ECB: Asset purchasing program will certainly be extended - Natixis

Jean-François Robin, Research Analyst at Natixis suggests that the big event of the week is the ECB’s meeting on Thursday as Mario Draghi had announced that the coming recalibration of the APP would be discussed in the Fall and that it would in his opinion start on 09/07.

Key Quotes

“We should therefore at the very least know a little more on Thursday. There will be a discussion because the decision is expected today, or at the very latest, the month after, in order to prepare the markets for tapering to begin in January 2018. The asset purchasing program will certainly be extended:  when you consider growth acceleration and inflation being up (1.5% in August vs. 1.3% in July) on the one hand, and a sharp increase in the euro (another +5% in July/August) and geopolitical uncertainty on the other, its length is much less certain. M. Draghi, we’re all ears.”