Analysts at ABN AMRO are expecting the ECB to keep interest rates on hold next year and expect the forward guidance on interest rates to change following further downgrades to the outlook.
Key Quotes
“We think that the central bank will signal that interest rates will be left on hold through 2019 by the June meeting. We expect a 10bp hike in all the policy rates in March 2020 and a second 10bp increase in September 2020 (with all policy rates moving in sync). We do not expect the ECB to end reinvestments until late in 2021. Finally, we expect a TLTRO extension to be announced in March 2019.”
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