ING three points following the ECB meeting today.
1- The announcement of reduction of QE is in line with expectations and the QE will continue at least until September 2018. In fat, the commitments of the Draghi during the press conference that there will be no abrupt end of QE suggests that there might be a new stage of reduction after September. The ECB has notably maintained through easing on the QE.
2- Don’t expect any rate increase before 2019. The ECB has reported a sequencing, i.e. the fact that the interest rates will stay low for a long time after the end of QE.
3- But the rates may be increased, even though the ECB is still buying bonds. This seems to contrintuitif, but it is a technical question important so that Draghi has clearly tried to make a distinction between «purchases of net assets» and the » reinvestment of the principal «. What we want to say that rate hikes will be possible in 2019, even if the ECB still buying bonds.