ECB Preview: Time for Inaction
- We do not expect material changes to the ECB stance at next week’s meeting, hence a
readiness to act given the highly uncertain economic and inflation outlook will remain.
- With no new policy signals to act as catalyst, we stay neutral on markets through the
press conference. In fixed income, we continue to expect range trading driven by the
offsetting factors of increased supply and large PEPP purchases.
- We expect Lagarde to be questioned on the Fed’s recent AIT decision and implications
for ECB’s ongoing strategic review as well as the stronger EUR and its implications for
the subdued inflationary outlook
Full report in PDF.