ECB: Markets expecting slowing of the asset purchases - BBH

The October 26 ECB meeting is approaching and markets are expecting a slowing of the asset purchases and an extension through the end of H1 18, according to analysts at BBH.  

Key Quotes

“The ECB's chief economist and board member Praet suggested a trade-off between the length of the program and its duration.  In the early phase, during a crisis, the size of the program is important, but later, the duration considerations eclipse it.  That assessment would seem to suggest a compromise with some creditor interests by a larger cut in purchases than the 20 bln euros that the consensus had expected (we thought 30 bln cut would maximize the central bank's options), and a longer run period (we had thought six months, but there is some talk now of a 12-month extension).”