The ECB will announce its "recalibration" later today
I outlined what to expect later today here but in summary, we are almost certainly going to see an expansion of PEPP stimulus by at least €500 billion and likely to June 2022 i.e. 12-month extension. Adding to that will be the enhancing of TLTRO terms.
Besides that, we could see some capacity for QE addition, rate tiering tweaks, and maybe even adding "fallen angels" to the list. I would argue that the latter is rather unlikely but we may still end up getting one of the other two if anything else.
Instead, Lagarde's press conference will be key to watch in gauging sentiment and the ECB "feel" about the outlook going into next year; as well as any comments on the euro.
Here is a neat crib sheet provided by ING for a guide ahead of the decision later:
