ECB Update – 14/12/2017 (11:30am) – by Arjun Lakhanpal

ECB Update – 14/12/2017 (11:30am): After October’s key policy announcement from the GC, which contained the “bulk” of the highly anticipated policy announcements, desks expect no change to the ECB’s policy stance in the final meeting for the year. However, pre-October, several policymakers suggested that ‘details’ could be delivered at the December meeting and as such we will be on the lookout for information on how the ECB intends to eventually scale-back its asset purchase program. Back in October, Draghi stopped short of delivering specific details on how the reduction in monthly purchases will be split up between different asset classes. The baseline assumption is for the bulk of the overall reduction will come from government bonds.