ECB preview: No material changes - Rabobank

According to market consensus, the European Central Bank will leave monetary policy unchanged on Thursday. Analysts from Rabobank expect to material changes in ECB’s staff projections.

Key Quotes:

“We do not expect the ECB to change its policy stance on Thursday. The ECB is unlikely to implement additional measures so long as there are still previous decisions pending full implementation – i.e. the first TLTRO-II allotment, due on 24 June, and the start of corporate bond purchases (CSPP). This was, broadly speaking, also the message conveyed in the minutes of the 20-21 April meeting.”

“President Draghi may face questions about Greece, Brexit and how the ECB sees the recent stickiness in long-term inflation break-evens.”

“We expect no material changes to the ECB’s staff projections (but with the odds tilted towards higher near-term inflation).”

Trade Live ECB rate decision & Mario Draghi speech - June 2 Coverage