Thursday’s ECB Governing Council meeting will be more of academic interest than it will affect markets in a meaningful way. That’s not to say the meeting will be a non-event – but it won’t be far off from being a non-event, frankly speaking. There will be no policy changes and no hints that policy is about to change at the next couple of meetings. So, it will be an exercise in reading the tealeaves for when policy might change – whenever that may be. Sounds exciting, no? Still, there are more than few moving parts that deserve our attention: the risk of changes to the tiering facility; the risk of the ECB tapering QE and sundry changes to QE program; and the outlook for money market rates.
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