Danske Bank analysts suggest that after a decline in inflation expectations since the start of the year, which intensified in the second quarter, they believe the ECB will now be forced to act. Key Quotes “While key ECB Governing Council members (GC) have recently voiced concerns about additional stimulus via bond purchases, we still expect a bold ECB package as the ECB’s credibility is on the line. If the ECB fails to deliver a substantial package, we believe inflation expectations will not creep higher from the alarmingly low levels (compared with its inflation mandate).” “Furthermore, if the ECB fails to deliver, the financial market community would have been thrown off the trail by the numerous dovish comments, including the major shift from Mario Draghi in Sintra, which would be a dent to its credibility and transparency.” “We keep our call for next week’s ECB meeting as we outlined after Draghi’s Sintra speech to include a rate cut and restart of QE (18 June 2019). We argue for a restart of QE for EUR45-60bn for 12 months, a rate cut of 20bp, a tiering system and extended forward guidance.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next NZD/USD rises above 0.64 ahead of key US data FX Street 4 years Danske Bank analysts suggest that after a decline in inflation expectations since the start of the year, which intensified in the second quarter, they believe the ECB will now be forced to act. Key Quotes "While key ECB Governing Council members (GC) have recently voiced concerns about additional stimulus via bond purchases, we still expect a bold ECB package as the ECB's credibility is on the line. If the ECB fails to deliver a substantial package, we believe inflation expectations will not creep higher from the alarmingly low levels (compared with its inflation mandate)." "Furthermore, if the ECB fails to… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
