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The European Central Bank (ECB) said on Wednesday it would temporarily pause its asset purchase program between December 22 and January 1, resuming the purchases on January 4.

The move is "in anticipation of lower market liquidity during this period and in order to reduce possible market distortions".

The bank, which controls monetary policy across the 19 countries that use the euro, said purchases between November 27 and December 21 would be somewhat frontloaded.This is "to take advantage of the relatively better market conditions expected during the early part of the month."

ECB President Mario Draghi has hinted that that the bank could look to ramp up or extend its 1 trillion euro (USD 1.1 trillion) quantitative easing (QE) program.

At the moment, the ECB purchases 60 billion euros worth of assets each month and has committed to doing so until at least September 2016.

Its next monetary policy meeting and subsequent media conference with Draghi will take place on December 3 in Frankfurt.

An announcement on expanded asset purchases is hotly anticipated and may roil markets, particularly given that the US Federal Reserve is seen making an historic interest rate rise in the same month.

Some ECB policymakers are seen opposing the expansion, however, with Sabine Lautenschlaeger, a German member of the bank's six-person executive board, publicly against such a move.

"I don't see any reason for further monetary policy measures, especially not for an extension of the (asset) purchase program," she said on Monday in Munich, according to Reuters.

Carsten Brzeski, chief economist at ING-DiBa, sees Draghi and the ECB doves winning out.

"While stronger-than-expected confidence indicators could motivate some ECB members to pitch the old Prince song 'When doves cry' and argue against new ECB action, Draghi's determination at the October meeting combined with continued underlying economic weaknesses and the absence of any inflationary pressure should be decisive in launching QE2," he said in a research note on Tuesday.

First Published:Nov 25, 2015 4:43 PM IST