20 minutes until the ECB. A cut of 25 bp to 1.00% is expected but the adoption of quantitative ease is more of a wild-card as the global economy shows signs of stabilization.
On the one hand you have the BOC deferring its announced move to buy assets while you have the BOE upping its gilt buys to GBP 125 bln. We’ll have to wait and see which of the warring camps within the ECB wins out. I’d place a small wager on the Germanic camp, which suggests QE steps will be tiny, if at all.
