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According to analysts at Rabobank, this month’s ECB meeting probably won’t bring substantial policy changes, but the Council still has some details to work out, including the definition of ‘through’ and the reinvestment policy.

Key Quotes

“Although we probably won’t see actual changes to the guidance, a discussion of ‘through’ could result in a more coordinated choice of words by individual members.”

“Preparatory discussion on principal reinvestments may start, but we do not expect further details before September.”

“Meanwhile, underlying economic trends are encouraging, despite lingering risks. With other policy tools available too, we think the threshold for a U-turn in the plans for the APP is high.”