No surprises expected at ECB meeting – TDS

In opinion of Rates, FX and Commodities Strategy team at TD Securities, next week’s ECB meeting should be fairly quiet in terms of market impact.

Key Quotes

“This month’s ECB meeting should be a rather non-eventful one, with the ECB still in implementation mode”.

“Markets will be watching for how the ECB sees the fallout from Brexit, but there we think they may be disappointed if they’re looking for strong signs of further easing to come just yet”.

“We think that another rate cut is still a good bet before year-end, but there’s no immediate need to act with market conditions having held up better than we had expected and only modest downgrades to EZ growth forecasts”.

“If anything, Draghi is likely to raise the fact that if the BoE hasn’t even responded yet and the implications there are clear, there is doubtful a need for the ECB to think about how it might need to tweak its policy”.