Tag Archives: ECB asset purchases

With important decisions on the future of its bond-buying programme looming, what are the ECB’s options?The European Central Bank (ECB) is expected to announce the bulk of its decisions on quantitative easing (QE) at its 26 October meeting. We would expect a broad commitment to extend QE beyond 2017 at a reduced pace, but several options are possible and additional technical details could be postponed to the 14 December meeting. Our baseline scenario remains that asset purchases will be...

In spite of euro strength, a decision on tapering QE will likely come in October. We believe a reduction in monthly asset purchases could commence in H1 2018.The ECB left its assessment and communication broadly unchanged at its meeting on 7 September. Draghi confirmed that “the bulk of the decisions” on QE extension should be made at the 26 October meeting.The statement mentioned recent currency volatility as “a source of uncertainty” to be monitored in the future, and the staff...

Our base forecast is that the ECB will extend QE by six months, but will modify forward guidance.The European Central Bank (ECB) faces a communication dilemma ahead of its 8 December meeting. Amid growing evidence of a more robust recovery and improved policy transmission, there is a case for a reduction in the pace of asset purchases at some point in 2017. However, signalling an eventual tapering of asset purchases now would almost certainly trigger an unwarranted tightening of monetary...

We see the ECB making its QE programme progressively more flexible in response to the shortage of eligible bonds Press reports suggest the European Central Bank (ECB) may be weighing up the idea of loosening its QE rules via a deviation from the capital keys which the central bank uses as a basis for balancing its sovereign bonds purchases across euro area member states.The ECB faces a problem, because a Brexit-led flight-to-safety has reduced the universe of core bonds eligible for...