FXStreet (Delhi) – Research Team at Deutsche Bank, expect that today’s meeting will likely be relatively uneventful given the recent stability in markets and the ‘ok’ data in the Euro area including this week’s ECB bank lending survey.
Key Quotes
“The house view is that the ECB will announce a 6 month extension to QE at the December 3rd meeting with a deposit rate cut not ruled out.”
“Mari Dragi will want to reiterate the dovish message of an ECB “ready, willing and capable” of action. At the same time, the ECB does not want the market pricing a policy outcome that is not justified by what they see as current fundamentals.”
“However for us there is no getting away from the fact that at the moment the ECB look set to continue to miss their inflation goals as far as the eye can see so even with stability in markets they will likely have to address this before too long.”
“So don’t expect any action today but look for clues as to what future easing will look like. Of note might be any answers Draghi gives to whether the depo rate is at the lower bound. This may give us clues as to the composition of future easing.”
(Market News Provided by FXstreet)