ECB's Lane: ECB to assess PEPP in June, could raise or cut purchases

Further remarks by Lane

I guess that makes it sort of official now that they may actually look into things next month. I wouldn't expect any major knee-jerk reaction on this as the market already got a taste of things from Kazaks last week.

All things considered, it would be prudent for the ECB to stick with the current PEPP envelope size but perhaps not use it all if need be.

As for tapering, well they have been talking that up more than they have done actually following through in stepping up PEPP purchases "significantly" as they said they would in March so go figure. The market is already sort of used to the rhetoric now.