Analysts at Nordea Markets suggest that while the short-term outlook may appear a bit boring, the ECB’s decision making will turn extremely interesting longer out.
Key Quotes
“The combination of gradually rising core inflation numbers and important nominations to the ECB Executive Board, including a new ECB President from November 2019, raises more question marks about the future monetary policy than seen for a while.”
“In our new forecasts, we expect that the next generation of ECB decision makers is slightly more hawkish than the current generation and the reaction function changes slightly. Thus, we continue to expect that the first rate hike will take place in December 2019, and we will see three more rate hikes in 2020, until weaker global trends start weighing on developments in the Euro area.”
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