ECB tapering well anticipated - BNPP

Analysts at BNP Paribas suggest that the ECB is likely to take centre stage this week with its scheduled meeting on Thursday when it is widely expected to announce plans for asset purchases beyond December and BNPP’s economists forecast a commitment to purchase EUR 30bn per month (down from EUR 60bn) for a period of six months.

Key Quotes

“With recent reports suggesting that a 9-month extension was under discussion, a result in line with our expectation might be viewed as marginally hawkish. However, we see limited scope for the EUR to benefit from the announcement given the extent to which tapering of purchases has already been priced in.”