ECB is unlikely to spring any hawkish surprises - Nomura

Analysts at Nomura think the ECB is unlikely to spring any hawkish surprises at the Governing Council meeting today as all its key policy rates and the asset purchase programme are likely to be left unchanged.

Key Quotes

‘President Draghi will be keen to impress that the euro area’s economic conditions – and its inflation level in particular – do not yet warrant any major shift in monetary policy. However, we are expecting some subtle shifts in the language of the ECB’s forward guidance.’

‘Specifically, we expect the words “or lower” to be removed from the existing wording. This shift will likely accompany a more balanced assessment of the growth outlook. And this in turn should reflect the underlying improvements that have unfolded in the macroeconomic picture over the past several weeks.”