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Analysts at Danske Bank point out that tt’s time for the long-awaited ECB meeting today and while no changes to interest rates are expected, the growth outlook and new staff projections alongside the discussion about a new liquidity facility will take centre stage.

Key Quotes

“Yesterday, sources close to the ECB revealed that growth and inflation projections would see an extensive downward revision. However, the ECB is still looking for a recovery during the year in line with our expectations and we do not expect new signals at the meeting, or an announcement on a liquidity facility (contrary to market consensus).”

“Watch out for a potential volatile and sharp intraday market reaction, as market expectations for the meeting are more dovish than ours.”