Views on the ECB's Governing Council converging on a limited, temporary increase of APP at Dec meeting; ECB could approve an envelope for APP or an increase limited in time with more frequent reviews, ECB sources say
SourceNewsquawk
SectionECB
- APP volume from April to be significantly lower than current APP plus PEPP buys
- ECB to signal unusually high flexibility and optionality
- Hawks pushing for no APP rise appear ready to compromise, fearing that doing nothing risks market turbulence
- New ECB programme or open-ended APP increase highly unlikely
- Commitment not to last beyond 2022, but some aim for signal that bond buys will last at least until end 2022