Research Team at RBS, is not expecting any changes to interest rate settings or to the size and scope of the asset purchase programme (APP) at this Thursday’s ECB meeting.
“We are now expecting the ECB to extend the APP from March 2017 to September 2017. We had previously expected this to be announced at the meeting in December. Extending forward guidance on QE to late 2017 will require significant change to the programme.
The issuer limit is arbitrary and should go, as should the maturity limit (31y). But to credibly extend its purchases of Germany, the Netherlands, and Finland, it must (i) choose to relax the issue limits for individual bonds, (ii) buy at yields below the deposit rate, or (iii) abandon the capital key for PSPP quotas entirely. We think that this will prove the order of preference: the issue limits should be relaxed.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.