Elegant ECB

 Last week the ECB decided to purchase €30 billion/month in bonds, down from the current €60 billion/month, through at least next September rather than a higher amount/month for a shorter period. While seemingly academic, here’s why. Markets must now consider the possibility of yet more QE when this latest dovish recalibration ends, injecting more uncertainty into when rates will start to rise, giving the ECB more flexibility and frustrating traders.

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