- All policy change effected in the year so far, so no more expected in the foreseeable future.
- Next move will be to signal an end to the APP program, which is set to run until Sep 2018 at a reduced Eur30bln, but remains open ended as yet.
- ECB staff projections will likely be revised higher on growth, echoing the optimism reflected in the rhetoric among the governing council members.
- Revisions to inflation may also be modestly revised up, but is unlikely to elicit much of a response from the market given the general malaise seen globally.
BoE Preview 14/12/17
- As in the aftermath of the last rate hike - or more appropriately, reversal - the MPC will stay on hold.
- They will also likely maintain their forecast for 2 more hikes over the 3 year forecast horizon, which on balance, was a touch less hawkish than the market anticipated.
- Uncertainty over Brexit will add to their wait and see approach from here, with focus on a transitional period likely to be highlighted again.
- Recent data run positive, but spending data this morning is a volatile series and the inflation pick up seen Tuesday was already in BoE projections where they see headline CPI topping out at 3.2%.
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