MNI BRIEF: Aussie Labour Market Tightens, Unemployment At 3.9%

MNI: BRAZIL'S COPOM RAISES SELIC RATE BY 100BPS TO 12.25%

MNI BRIEF: US Budget Deficit $367B In Nov; FYTD Record $624B

MNI China Daily Summary: Wednesday, December 11

MNI BRIEF: Chinese Rail Passenger Numbers Break Record

MNI: PBOC Net Injects CNY37.3 Bln via OMO Wednesday

MNI:AUSTRALIA NOV UNEMPLOYMENT RATE +3.9%

MNI: US NOV TREASURY BUDGET -$366.8B

EZ/UK Bond Supply Calendar: BTP Auction on Thursday

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

MNI ECB Preview - December 2021: Recalibration Potentially Short on Details

A Recalibration Potentially Short on Details

  • PEPP is likely to end in March, with a beefed-up APP smoothing the transition from the emergency phase to the recovery phase.
  • How much of this will get announced in December is unclear given heightened uncertainty over growth and inflation, in both directions.
  • It is a close call, but we err on the side of the ECB seeking to retain some optionality by pre-committing to ending PEPP and using the APP flexibly (perhaps by pursuing quarter-by-quarter decisions on purchase volumes), without specifying at this stage exact target volumes or potential envelope size.
  • Whether or not the mechanics of the ‘transition purchases’ are unveiled in December or February, a monthly APP purchase rate of EUR30-40bn/month for six months, or a ~EUR60-120bn purchase envelope on top of the existing EUR20bn/month purchases would be in the right ball park.
For the full publication please see:


ECB Preview December 2021.pdf

Central Bank PreviewECB - PreviewCentral Bank ReportsMarkets
Central Bank PreviewECB - PreviewCentral Bank ReportsMarkets

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.