Danske Bank analysts are not expecting the ECB to acknowledge the risks to the euro area economy at next week’s meeting but suggest that they do not expect to see any policy decisions yet.
Key Quotes
“We do not expect a liquidity operation announcement either.”
“The staff projections will be instrumental to the ECB narrative but as several ECB governing council members have emphasised the importance of assessing the impact on the medium-term inflation outlook.”
“We expect ECB to look through short-term weakness in the data at this stage & note that it remains ready to stimulate economy if needed. While in the near term the growth outlook remains fragile, we do not expect the ECB meeting to change the overall narrative or market sentiment.”
“However, watch for a potential volatile and sharp intraday market reaction as market expectations for the meeting are more dovish than ours.”
Share
