ECB to extend QE beyond September 2016 say traders: Reuters poll

(Reuters) - The European Central Bank will expand its asset purchase program and extend it beyond September next year amid lower inflation expectations, a Reuters poll of euro money market traders found on Monday.

Just six months into the ECB's asset purchase program that was set to end a year from now, traders polled by Reuters said the ECB would add more stimulus to boost the economy and raise inflation.

Indeed, 11 of 19 traders said the ECB would up the pace, with the median suggesting it would spend 20 billion euros more each month on asset purchases, taking the total to 80 billion euros a month.

Most traders also said the central bank would - probably before year-end - announce a new end-date for the quantitative easing program.

"I don't think that there's any alternative as far as the central bank is concerned," said a trader. "They're looking to increase inflation expectations and at the moment everything's heading in the opposite direction."

The poll also found banks would borrow 70.0 billion euros at the ECB's weekly tender. 70.909 billion euros was taken last time.

(Reporting by Siddharth Iyer, Polling by Kailash Bathija; Editing by Toby Chopra)

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