ECB: Markets expecting slowing of the asset purchases - BBH

Sandeep Kanihama FXStreet Contributor

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).”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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