Desperate to keep euro down, ECB may hold off on QE plans until December
Extreme prudence needed for communication, policy, euro-area officials say
The rise in the euro after European Central Bank President Mario Draghi’s speech in June, during which he referenced “reflationary forces”, followed by another jump when he didn’t downplay the remarks last week in Jackson Hole, may be pushing policy makers to delay communication on QE tapering.
Bloomberg reports, citing euro area officials, that the finalization of plans for tapering the ECB bond-buying program may be pushed back to the final session of the year on December 14, right before the current plan expires. Officials suggested that markets would likely receive general indications on the plan when they meet next week, or at their October 26 meeting.