The European Central Bank meet on Thursday in Cyprus; a quick preview via Merrill Lynch Research
ML says:
- The market awaits clarification on QE details
- With QE announced and pre-committed until September 2016, suspense on ECB policy should be minimal (for a while at least)
- From spring 2016 onward, we are likely to once again start scrutinizing whether the programme will continue after September
- However, in the meantime the debate is likely to focus on the technicalities of QE; if and how the central bank manages to deliver on its pledge to purchase EUR60bn of securities every month
- It is from this point of view that next Thursday's meeting will be important