Boa / ML on their expectations for the European Central Bank
ECB - less for longer and low for long
- Factoring in recent communication from the ECB, our new baseline is the commitment on 26 October of EUR30bn for 9 months.
- We still expect QE to end in Dec-18, although the option of buying into early 2019 will exist.
- Also, we expect stronger fwd guidance. The main issue remains that no further ammo is left in case of adverse developments.
I posted earlier on HSBC's thoughts: HSBC say ECB to slow purchases to EUR40bn/month for an additional 6months