ECB staff to make sharp downward revisions to the forecasts – TDS

According to analysts at TD Securities, all eyes will be on the ECB’s March policy decision today.

Key Quotes

“While we don’t expect any changes to policy and forward guidance, we expect the staff to make sharp downward revisions to the forecasts (and leave risks tilted to the downside), with growth in particular reflecting the weak data at the turn of the year.”

“We do not expect the Governing Council to change its forward guidance (that rates will remain on hold until “at least after Summer 2019” and as long as necessary to ensure inflation returns to target), and while there are risks that they further talk up new TLTROs, we do not yet expect a formal announcement.”