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Analysts at Nomura offer a sneak peek at what expect from Thursday’s European Central Bank (ECB) monetary policy decision due at 1245 GMT.

Key Quotes:      

“The most important signal to watch for at the ECB meeting will be related to the extension of the TLTROs and interest rate forward guidance.

Although an actual decision may well be delayed until April or June, we think Mr Draghi is likely to signal at March’s meeting that the ECB is looking closely into offering another TLTRO in coming months.  

With regard to rate forward guidance, there is less urgency to tweak the Bank’s communications at this stage, but it should consider altering its language in June we think.  

The ECB’s projections for growth and inflation should echo the message that it needs more time to assess if recent downside surprises are temporary or more permanent in nature.”