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What to watch (2/2)

MARKET INSIGHT
  • The ECB also meets today and had set the meeting up to announce what would replace PEPP when the programme is due to end in March. A beefed-up APP is expected to be the replacement but we think we might not get all the details in terms of the exact size of APP purchases at this juncture. Given the uncertainty of Omicron and potential further lockdowns across Eurozone economies, setting the purchase pace for April seems to be a long way away and the ECB may prefer to wait until the February meeting to give more details. The MNI ECB Preview is here.
  • This morning also sees the SNB policy decision (preview here) and the Norges Bank decision. The former is expected to be uneventful while the Norges Bank decision is a live decision over whether to hike or not. The MNI Markets team expects that the economic progress in Norway should counter near-term Omicron concerns and will see the Norges Bank raise rates today. But that the Norges Bank could stop short of name-checking March for further hikes (see MNI Preview here).

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