###With a couple of exceptions the............>

EONIA: ###With a couple of exceptions the consensus in the market is that the

ECB is likely to reduce its asset purchase programme from E60bln per month to

E30bln and extend it for 9-months from the start of 2018. The markets have then

priced in first rate hike by end of Q1 2019, thinking that 'well past' end of QE

equates to 6-months.

- Some analysts have also highlighted that this could be a dovish taper with the

ECB keeping its forward guidance and sequencing to keep the Euro from rising

further. 

- POV: With the Eurozone economy growing steadily, unemployment gradually

falling and no risk of deflation, does the ECB need to continue its QE programme

for so long? With this in mind, there is a risk the ECB could be less dovish

than expected and/or announce a slightly quicker taper that lasts for only

6-months. This then could bring forward the date for the first rate hike to the

end of 2018, were currently the market prices in a 50% chance of a 10bp deposit

rate hike.