To taper or not to taper?

Given the economic recovery and the diminishing risks, this is now the usual question that arises at each Fed and ECB meeting. The Fed once again ruled out any announcement of tapering (reduction in asset purchases) in the short term and the ECB intends to continue its monthly purchases at a steady pace. However, some central banks such as those in Canada and New Zealand (unofficially) have decided to gradually reduce their asset purchases, without long-term interest rates reacting in these two countries. This week, the same question will arise for the Bank of England. Will it remain cautious like the Fed and the ECB or announce a reduction in its asset purchases? While we expect the BoE to remain cautious, an announcement as early as this week should not be ruled out.