ECB Watch – Conservative Mario

by: Nick Kounis , Aline Schuiling , Joost Beaumont , Kim Liu

ECB-Watch_Conservative-Mario1.pdf ()

• President Draghi strikes a less dovish tone, playing down the size of the balance sheet
• ECB announces details of asset purchase programme, but does not specify any scale
• We expect central bank to stick to QE-lite approach, rather than step up to sovereign QE
• Financial markets could continue to reverse sovereign QE expectations near term