MNI have been speaking to ECB sources who say that the governing council is in ‘wait and see’ mode for the rest of the year, barring any big shifts in the economy or inflation. The sources say that the ECB face big barriers when discussing QE and want to wait for the latest measures to work first.
Corporate bond purchases could be initiated with ease but there are still risks and conditions that need to be met. There are doubts that the GC would agree on sovereign QE except under extraordinary circumstances, even though they are generally supportive of the concept.
Not a lot in this that we didn’t know but the last line on the GC being supportive of Sov QE as a program shows a bit more support for it than we’ve heard before. Just to remind you also that from Jan ECB meetings switch to a 6 week schedule from the monthly ones we have now.
