ECB to slow purchases to EUR 40bn/month for an additional 6 months - HSBC

Economists at HSBC expressed their take on the ECB’s QE taper plans due to be announced by the central bank later today at its policy meeting.  

Key Quotes:

“Our economists believe the central bank will choose to slow the purchase pace to EUR40bn from EUR60bn per month for an additional six months.

If the ECB officials are correct then this would mean the pool of bonds would be used up beyond that point. Bloomberg also reported that the officials are concerned investors may be reluctant to sell assets and that limiting monthly purchases to EUR25bn per month may address some of those concerns.”