'ECB sources' story from Bloomberg
- ECB still seen as likely to send dovish message at Dec 8 meeting
- The rise in bond yields has given ECB leeway on QE tweaks and decision
The ECB may have room to put off some decisions on the future of its bond-buying program until early next year, according to euro-area officials familiar with the matter cited by Bloomberg.
They say there is no longer a sense of urgency to deal with scarcity because of the global bond slump.
The ECB is currently pledge to buy 80B euros of debt per month but a variety of rules made that mandate increasingly tough to fill because there are only so many bonds in existence and the ECB doesn't want to corner the market.
Comments from Governing Council members show that an extension of the program is virtually assured and that rules will be tweaked to make more bonds available.
My view is that the market won't like the delay. It won't be seen as hawkish but instead will send a signal of uncertainty, if not incompetence. The market doesn't want to wait until Jan 19 to find out the plan for March and beyond.
