22 Oct 2015
ECB under pressure for further easing – Danske Bank
FXStreet (Delhi) – Research Team at Danske Bank, suggest that today's main event is the ECB meeting and the pressure for further easing is building but we expect the ECB to keep its powder dry today.
Key Quotes
“The latest comments from prominent ECB members have focused on the time remaining under the current QE programme and that it is still too early to decide whether more easing is needed. That said, we expect a continued dovish tone from ECB president Mario Draghi who is likely to repeat that the ECB can adjust the size, duration and composition of the QE programme.”
“We still expect the ECB to announce an extension of the QE purchases beyond September 2016 at the meeting in December or in Q1 16. From a market perspective, where a deposit rate cut is priced with more than a 50% probability, we do not look for further clarity from Draghi, but we expect him to continue to focus on the possibilities under the QE purchases.”
Key Quotes
“The latest comments from prominent ECB members have focused on the time remaining under the current QE programme and that it is still too early to decide whether more easing is needed. That said, we expect a continued dovish tone from ECB president Mario Draghi who is likely to repeat that the ECB can adjust the size, duration and composition of the QE programme.”
“We still expect the ECB to announce an extension of the QE purchases beyond September 2016 at the meeting in December or in Q1 16. From a market perspective, where a deposit rate cut is priced with more than a 50% probability, we do not look for further clarity from Draghi, but we expect him to continue to focus on the possibilities under the QE purchases.”