Fitch: Change in ECB policy poses risks for markets in 2018

James McCormack, Fitch's Global Head of Sovereigns, expressed his take on the ECB monetary policy programme, in the latest report published on Tuesday and as cited by Reuters.

Key Highlights:

Adjustments to ECB's asset purchase program could be quite significant.

Change in ECB policy poses risks for markets in 2018.

Major risks going into 2018 are US trade policy uncertainty, geopolitics, and higher interest rates.

Governments are not well positioned to deal with higher rates but the world is moving in that direction.

Regarding a taper tantrum, Asian countries could see some volatility but have buffers from current-account surpluses and FX reserves.