ECB #2 Vitor Constancio said sovereign QE was discussed at Sept policy meeting but it was not on the table for decision at that meeting. He said it’s “certainly a possibility” in the future.
Here’s how I see it:
It wasn’t on the table and the restaurant wasn’t even opened yet. Meanwhile Draghi is driving a bus full of ECB members around the neighborhood and if they don’t like the bag lunch they’ve been served of ABS purchases, covered bond buys, TLTROs and rate cuts … then they’ll be heading to the restaurant in a few months time.
But the soonest it could be “on the table” for action is December and midway through Q1 is possible only if they decide lunch wasn’t good enough.
