ECB: Too early to discuss tapering – Danske Bank

Research Team at Danske Bank, suggests that at next week’s ECB meeting, the main topic is likely to be QE tapering after unconfirmed reports of ECB officials indicating that the ECB is considering QE tapering options once the programme ends.

Key Quotes

“In our view, the ECB will not pre-announce QE tapering at the meeting. Instead, we expect the programme’s end date to remain dependent on the inflation outlook, and we believe the ECB will extend the QE purchases by six months at the meeting in December.

We see some risk that the ECB will scale down its purchases to EUR60bn per month as was the case until April 2016, but our base case is that the current pace of EUR80bn per month will be maintained.”