This is what Pete and I are expecting from the BOE and ECB

If anyone gives a shit.

We expect the Old Lady to increase QE by £50 bln (should do more, but think they’re going to take a conservative approach)

We expect ECB to cut main interest rate 25 bps, from 1% to 0.75%. May possibly tinker with deposit rate which presently sits at 0.25%.

We expect no move on further LTRO for time being.

We expect no restoration of SMP for time being.

We’d like to see the ECB be more aggressive, but have pretty much given up hope on that front.

We think BOE QE of £50 bln and ECB cut of 25bps are pretty much fully discounted in present EUR/USD and GBP/USD rates.