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Jens Nærvig Pedersen, senior analyst at Danske Bank, notes that yesterday, a Bloomberg story suggested that the ECB staff projections published later today would justify an announcement of a new liquidity operation.

Key Quotes

“The same story suggested growth projections would point to close to potential growth by the end of the year (thereby implying no major change in the growth narrative). While we do not expect a liquidity operation to be announced later today, the discussion that takes place will be very important for a potential monetary policy case – and as such, point to confidence about a temporary (or potential) structural growth slowdown in the euro area.”

“The ECB published an opinion with no objection to Philip Lane replacing Peter Praet as ECB chief economist. With the EP and ECB’s positive opinion on Philip Lane, the European Council would be the last formal body to give approval before Lane could start at the ECB on 1 June 2019.”