ECB to downplay early taper talk

The ECB’s quantitative easing programme has got off to a solid start with the Bank buying the planned quantity of assets and financial markets responding positively. And with the recovery seeming to gain pace, there has even been talk that the Bank might not need to fulfil its promise to buy €1.1trn of assets by September 2016. But we still think that the policy is sorely needed and expect President Draghi to stress in the press conference following the next meeting on Wednesday 15th April that most Governing Council members still want to implement it in full. In the end, we suspect that the Bank might need to up its game to ward off the threat of deflation.