Sources story from Reuters
Aims to wait until after Sep German elections before a new policy move
Will buy as few bonds as possible below the deposit rate from Jan
No option is off the table if the economy worsens
Senior officials say the ECB is conscious that QE is losing its impact and major new moves could impact polictics
Sounds like a big bit of pandering to the Germans but also to the other elections due next year in France, Netherlands and maybe Italy. That's a long time to go fence sitting and will make ECB meetings really boring.
I don't see this as bullish or bearish for the euro. With or without elections, the ECB would have sat on their hands until then anyway, unless something changed in the economy that they would need to adjust policy for.
