Flexibility under QE programme has many dimensions

Draghi and a number of other ECB members have repeatedly argued for flexibility in the QE programme in terms of its size, composition and duration. Considering the current design of the QE programme, monetary policy easing could be designed in many different ways, which all have pros and cons.

"The easiest and most obvious way to change the QE programme would be to extend the purchases beyond September 2016. An extension of the EUR60bn monthly purchases by six months to the end of March 2017 seems likely if this were to be the only change to the programme", says Danske Bank. 

The reason why an extension by six months could be considered is that the ECB wants inflation to be around 1.5% before ending its QE purchases. 

The ECB's updated inflation projections due for release in December could show that this will be the case around March 2017. The projection from March, which was released when the QE purchases started, had inflation above 1.5% in Sep. 2016.