At the June FOMC meeting, the Fed established a gradual reduction of its treasury and agency holdings with initial caps of USD 6B for treasuries and USD 4B for mortgage backed securities (MBS) per month. Furthermore, the Fed will increase the runoff over time to a maximum of USD 30B per month for treasuries and […]
Tag: tapering
Here’s why the ECB probably won’t raise rates before tapering
Since the ECB meeting earlier this month, there has been increasing speculation that they may raise the deposit rate, currently set at -0.4%, before beginning to taper their Quantitative Easing (QE) programme, currently set at €80bn of bond purchases per month. Most recently, Ewald Nowotny from the Governing Council explained that the central bank need […]