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3 Sep 2015
Draghi could deliver a dovish message today – Deutsche Bank
FXStreet (Edinburgh) - According to Jim Reid, Analyst at Deutsche Bank, market consensus sees the ECB leaning towards the dovish side at today’s meeting.
Key Quotes
“With regards to the ECB, Draghi's press conference will be closely watched”.
“DB’s Mark Wall expects the council to, as a minimum, highlight downside risk, reiterating its commitment to QE and signalling its ‘readiness’ to act”.
“However Mark thinks that this may not be enough and instead the rhetoric may go further than in the last meeting”.
“In particular, the Governing Council and Draghi could explicitly mention that there is an increased likelihood that the ECB will have to do more to achieve a sustainable inflation path towards 2%”.
“This could eventually include extending the duration or increasing the monthly target of asset purchases”.
“Also worth watching will be the staff inflation forecasts where Mark expects the 2017 forecast to be revised marginally lower. This fits in with our view that central banks will likely be forced to do more for some time to come”.
Key Quotes
“With regards to the ECB, Draghi's press conference will be closely watched”.
“DB’s Mark Wall expects the council to, as a minimum, highlight downside risk, reiterating its commitment to QE and signalling its ‘readiness’ to act”.
“However Mark thinks that this may not be enough and instead the rhetoric may go further than in the last meeting”.
“In particular, the Governing Council and Draghi could explicitly mention that there is an increased likelihood that the ECB will have to do more to achieve a sustainable inflation path towards 2%”.
“This could eventually include extending the duration or increasing the monthly target of asset purchases”.
“Also worth watching will be the staff inflation forecasts where Mark expects the 2017 forecast to be revised marginally lower. This fits in with our view that central banks will likely be forced to do more for some time to come”.