Trading the September ECB – RBS

Research Team at RBS, suggests that the ECB meeting is live but many packages of actions are possible.

Key Quotes

“We put a total probability of QE extension today at 60%. If QE is extended, we think it’s only about 50-50 that we also get full operational redesign details.

If QE is extended, and the ECB tells us how it will change its programme, we think a changed issuer limit is very likely, relaxed issue limits are likely, and abandoning the deposit rate floor is very unlikely.”