Sunday 29, October 2017 by William Mullally

ECB set to announce the unwinding of Quantitative Easing

Mihir Kapadia – CEO and Founder of Sun Global Investments

 The ECB is set to announce a reduction in the current EUR 60 billion-a-month Quantitative Easing (QE) programme which would be a major policy shift in Frankfurt. The announcement has been well signalled by the central bank, having built up to it all summer, with the aim of causing as little disturbance as possible for the markets. The pacing and timing of the tapering will be the focal point for the markets. Analysts are expecting a slow unwinding beginning in January 2018 for the nine-month period that the ECB QE is expected to last.  

While we do not expect the ECB to change the interest rates, Draghi is expected to announce a halving of the ECB bond purchases for the nine months to September 2018.

Ahead of all the action in Frankfurt, the pound has softened further to yesterday’s highs against the Euro, dipping by 0.1 per cent EUR 1.1198. This has meanwhile helped the FTSE100 to rebound in London.

All the attention will be at Frankfurt for the day.