On the ECB's QE Taper Announcement

The ECB will taper its bond purchases from €60 billion to €30 billion per month. This is a non-event. Over its almost three years, euro area QE has done nothing to lower bond yields or weaken the euro (both have moved in the opposite direction), but inflation has improved slightly. Once at least arguably a necessary form of forward guidance, to convince the market that the ECB would do “whatever it takes,” even that is no longer necessary in today’s risk-tolerant world. This is a non-event.