ECB to kick off tapering later this year – Goldman Sachs

Dhwani Mehta FXStreet

Commenting on the European Central Bank’s (ECB) exit timetable, Sven Jari Stehn, Chief European Economist at Goldman Sachs said that the central bank could start stimulus withdrawal towards the end of 2021.

Key quotes

Given where the FOMC is placed in regards to adjusting policy this "should make the [ECB] Governing Council more confident that it can start to reduce the PEPP purchases later in the year.”

“We do think they will step down the PEPP purchase program at the September meeting going into Q4.”

The ECB is not "in a rush to follow the Fed in accelerating the exit timetable."

“We have four fiscal reasons for thinking that the return to fiscal consolidation will not be as abrupt as after the GFC and during the eurozone crisis.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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