The Barclays Research Team provides their expectations on today’s European Central Bank (ECB) monetary policy decision due to be announced at 1145 GMT.
“We expect the staff macro projections to show a slight downward revision of near-term growth and an upward revision to headline inflation, owing to higher oil prices and weaker EUR.
We believe the GC will discuss the options for tapering the net asset purchase programme towards zero. However we do not expect policy changes in June, with the ECB likely only discussing policy options, and keen to see more data. In turn, we expect the tapering of QE to be announced in July (even if an announcement in June would not be a complete surprise to us).”