Can ECB Hold a Hawkish Surprise for Markets in 2017?

The video discusses the European Central Bank's (ECB) policy outlook, highlighting that the upcoming meeting is expected to be uneventful with no major changes. However, investors should consider the ECB's potential shift towards tapering asset purchases due to a stronger European economy and reduced deflation risks. This could lead to steeper yield curves and impact corporate credit. Political factors, such as the French election, may also influence ECB decisions.

What is the expected outcome of the upcoming ECB meeting according to the transcript?

• A non-event with no major changes

• Introduction of new forecasts

• Significant policy changes

• Increase in interest rates

Why might the ECB consider tapering its asset purchases sooner than anticipated?

• Increased deflation risks

• Stronger European economy and inflation

• Political instability in Europe

• Pressure from other central banks

What impact could the ECB's tapering have on fixed income markets?

• Steeper yield curves

• Stable yield curves

• Increased bond purchases

• Lower interest rates

Which segments of corporate credit might be preferred during the ECB's tapering?

• Corporate bonds heavily bought by ECB

• Corporate hybrids and higher yielding segments

• Government bonds

• Short-term corporate bonds

How might European politics influence the ECB's policy decisions?

• By forcing immediate policy changes

• By accelerating policy changes

• By having no impact

• By delaying policy changes until after elections