Market Ready For €40-Billion/Month Cut ECB Tapering, Geoff Lewis Says

Any decision by ECB to reduce tapering won’t affect markets much, said Geoff Lewis.

Revati Krishna @revatikrishna

26 Oct 2017, 12:29 PM IST

A new 50 euro currency bank note is displayed during its unveiling at the European Central Bank (ECB) headquarters in Frankfurt, Germany. (Photographer: Alex Kraus/Bloomberg)

The market expects the ECB to start trimming its monthly asset purchases to €40 billion from the current €60 billion beginning in January, according to Geoff Lewis, global strategist (capital markets group), Manulife Asset Management.

Anything around €20 billion to €25 billion worth of reduction would mean that the ECB is prioritising economic concerns over the diminishing pool of eligible government bonds, said Lewis, adding that the central bank is not going to be in a hurry to take any decision.

Watch the full interview here: