ECB meeting accounts to be scrutinised for tapering hints – RBC CM

Analysts at RBC Capital Markets note that in his post-meeting press conference, President Draghi was quite adamant that the changes to the EBC’s QE programme announced in December (extending purchases by nine months from March but at a reduced monthly rate) did not represent ‘tapering’ and that the subject was not even discussed by the Governing Council.

Key Quotes

“The meeting accounts will therefore be scrutinised for any indication that December’s package represents the beginning of a gradual reduction of the asset purchase scheme rather than the extension that Draghi emphasised. Also of interest will be any light that the accounts may shed on how the decision to allow the purchase of assets yielding less than the deposit rate ‘to the extent necessary’ will work in practice given that further details have yet to be released.”