HomeA Preview of the October ECB Meeting

A Preview of the October ECB Meeting

The European Central Bank (ECB) October meeting looms large as inflation pressures guarantee a heated discussion inside the Governing Council. The central bank is on track to end its pandemic emergency purchase programme.

The main event of the trading week for currency traders is the ECB meeting scheduled two days from now. The central bank is on track to end its pandemic emergency purchase programme in March next year, leaving close to EUR100 billion unused.

At the same time, with the end of the pandemic emergency purchase programme, the central bank is expected to expand its regular program of asset purchases by EUR20 billion per month, double the current size. But the key for traders is how committed is the ECB to open-ended quantitative easing?

That is the real question because inflation will likely weigh on any such decision. Earlier today, the producer prices for the month of September in Spain rose by +23.6%, the highest increase since 1977. Producer prices are usually transferred to consumers, and so the consumer price index will likely increase too. This is where the ECB’s mandate kicks in, as it aims at price stability below or close to 2% inflation.

Join the Social Trading revolution. Connect with other traders, discuss trading strategies, and use our patented CopyTrader
eToro is the world’s leading social trading platform, offering a wide array of tools to invest in the capital markets
Largest number of currency pairs to trade
Open my Account

We use cookies to personalise content & ads, provide social media features and offer you a better experience. By continuing to browse the site or clicking "OK, Thanks" you are consenting to the use of cookies on this website.