ECB: Market is sensitive to any possible taper comments ahead of the next meeting - BNZ

Jason Wong, Currency Strategist at BNZ, notes that the ECB President Draghi said that the central bank is “committed to preserving the very substantial degree of monetary accommodation necessary to secure a sustained convergence of inflation” toward the target.

Key Quotes

“This followed comments from other Governing Council members Coeure and Villerory de Galhau, who signalled that the time to taper QE had not yet arrived. The market is sensitive to any possible taper comments ahead of the next ECB meeting in early December. These comments supported German bunds, with the 10-rate down 4bps to 0.23% and this has fed through into European markets.”