10 Mar 2016
ECB preview: expected to act - ANZ
Analysts at ANZ offered a preview for the ECB.
Key Quotes:
"We expect that the European Central Bank (ECB) will step-up its policy accommodation to support the economy in an environment of low inflation.
The median forecast is for a 10bp cut in the deposit rate to -0.40% and an increase in the pace monthly asset purchases (QE), currently running at EUR60bn per month.
Updated macroeconomic projections are expected to include a sharp reduction in the 2016 inflation forecast from 1.0% to 0.5-0.7% (largely on the back of the sharp fall in energy prices)."
Key Quotes:
"We expect that the European Central Bank (ECB) will step-up its policy accommodation to support the economy in an environment of low inflation.
The median forecast is for a 10bp cut in the deposit rate to -0.40% and an increase in the pace monthly asset purchases (QE), currently running at EUR60bn per month.
Updated macroeconomic projections are expected to include a sharp reduction in the 2016 inflation forecast from 1.0% to 0.5-0.7% (largely on the back of the sharp fall in energy prices)."