Providing little more clarity on OMTs

Having been lauded as being “as mighty as the Fed” after unleashing a policy “bazooka” in the form of the Outright Monetary Transactions (OMT) programme in September, the ECB is unlikely to announce more major policy measures after October’s Governing Council meeting. While President Draghi may clarify what the ECB will require before it will undertake OMTs, he is unlikely to provide any clear indication of the likely scale of bond purchases if/when Spain seeks outside assistance.