What to Expect From This Week's ECB Decision

The transcript discusses the potential extension of a financial program, aligning with market expectations. It explores the need to adjust QE parameters, such as buying bonds below the deposit rate and increasing the issue limit size. The discussion highlights the importance of making comprehensive changes to avoid frequent rule adjustments. The capital key is considered a red line, and the Bundesbank's role in filling gaps without deviating from it is emphasized. The transcript underscores the need for creativity within the program's parameters.

What is the market's expectation regarding the ECB's QE program?

• It will end in March 2017.

• It will be extended to September 2017.

• It will be reduced by six months.

• It will remain unchanged.

Which option is considered insufficient for expanding the ECB's bond purchasing universe?

• Reducing the number of bonds purchased.

• Buying bonds below the deposit rate.

• Increasing the issue limit size.

• Raising the deposit rate.

What is the current issue limit size for ECB bond purchases?

• 25% of any individual bond.

• 50% of any individual bond.

• 33% of any individual bond.

• 70% of any individual bond.

Why is the capital key considered a 'red line' for the ECB?

• It is not related to bond purchases.

• It has already been changed multiple times.

• It is not important for QE.

• It is too politically complicated to change.

How can the Bundesbank fill gaps without deviating from the capital key?

• By increasing the capital key.

• By purchasing other asset classes.

• By buying more boons.

• By reducing bond purchases.