There might not be a consensus for a QE announcement next week from the ECB, MNI’s sources reporter earlier today.
Recent conversations with senior Eurosystem sources suggest there probably won’t be a consensus that would allow the ECB to embark on outright quantitative easing at the present time.
But there is enough support that Draghi could announce ” at least a limited QE programme” they say. A source said that it is often good to “positively surprise” markets.
MNI has long had a good stable of ECB sources but was offside last November when they said no action was coming and then Draghi delivered a surprise rate cut.
Citing two “top Eurosystem sources” they say that poor economic data since the ECB’s June moves may have accelerated preparations for ABS purchases. A source also said it’s not clear whether inflation forecasts will change much from the 0.7% this year, 1.1% next year and 1.4% in 2016.
