###POV: 'FINAL DECISION' ON ASSET PURCHASES?....>

ECB: ###POV: 'FINAL DECISION' ON ASSET PURCHASES? With markets pricing in under

2% probability of a rate hike at the ECB Governing Council meeting Thursday,

attention is mainly on new 2018-20 economic projections (amid downside data

surprises and external weakness) and a final decision on ending asset purchases.

- In contrast with initial market reaction to a Bloomberg sources piece

Wednesday emphasising a GDP growth forecast downgrade Thursday, MNI's sources

played down the importance of such revisions.

- MNI sources have also indicated that a number of central bank governors want

to see a "final decision" Thursday on pace of APP purchases slowing from E30bln

to E15bln from October before ending in December. But others said that for

flexibility they would retain the word "anticipate" regarding APP wind-down.

- Hawkish risk: ECB makes `final decision` to end QE, downplays growth risks,

retains guidance. 1st hike possibly brought forward but still priced Q419. 

- Dovish risk: ECB retains `anticipate` language on QE taper/end implying door

still open to extended APP beyond 2018, sees risks to growth to the downside.