Hey, hey, its ECB Day! (Just the September meeting minutes, but still)
A quickie preview of what's coming up from the European Central Bank today ... basically the interst in the minutes is to look for clues to QE 'tapering'
- In line with our and market expectations, in September the ECB left all policy rates unchanged and did not announce any tweaks to forward guidance or make any announcement on the future of QE after December.
- However, there was a preliminary discussion within the Governing Council on possible scenarios for QE after December, with unofficial sources suggesting the "possibilities discussed included - but were not limited to - cutting asset purchases to 40 or 20 billion euros a month, with extension options including six months or nine months" (Reuters, 8 September).
- The minutes might give us more of a flavour of the discussion that took place.