ECB rate decision and press conference are two major focuses in a busy day. UK GDP and productions, US CPI and FOMC minutes will also be featured. ECB will keep monetary policies unchanged, without a doubt. There shouldn’t be any change in ECB’s plan on forward guidance too. That is, it will indicate to keep interest rates unchanged at least through the end of 2019. Details regarding the TLTRO III should be released later in June, rather than at this meeting.
Though, markets might be eager to know more on two topics. Firstly, March meeting minutes revealed that some members indeed favored to extend forward guidance until first quarter of 2020. President Mario Draghi would be asked to elaborate more on the discussions. Secondly, members’ comments over the past weeks have given rise to the possibility of a move to a “tiered deposit rate” system in order to save bank profitability.
Here are some previews:
