BERLIN Wed Jan 21, 2015 5:52am EST
BERLIN Jan 21 (Reuters) - The head of Germany's BDI industry association said on Wednesday it would be bad news if the European Central Bank did not announce a government bond-buying programme on Thursday to boost the euro zone economy, because markets were expecting such a move.
"If the programme were not to be announced, it would be bad, because the markets are already expecting it," said BDI chief Ulrich Grillo, adding that it would be a "big risk" if the ECB backed down from the plan for so-called Quantitative Easing.
He echoed German Chancellor Angela Merkel's warning that euro zone states should press ahead with structural reforms, saying: "Monetary policy alone is not effective." Grillo said the impact of QE on German industry would be "limited" and it was questionable whether it would unleash more investment. (Reporting by Rene Wagner; Writing by Stephen Brown; Editing by Madeline Chambers)
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