Insight - ECB’s ‘phantom taper’?

As investors await the latest guidance and economic forecasts from the ECB today, the nuance of its policy in this regard differs considerably from that of the United States Federal Reserve (Fed) or most of its peers.

WE’VE had “taper tantrums” and even “dovish tapers”, but the European Central Bank (ECB) may deliver a taper that’s not really a taper at all.

As central banks around the world mull a reduction of their pandemic-related bond buying supports as recoveries widen, the timing and speed of these so-called “tapers” now dominates market thinking and will for the rest of the year and beyond.