ECB to leave policy on hold – TDS

Analysts at TD Securities are expecting the ECB to leave policy on hold today, and importantly to leave its forward guidance intact that rates will remain at their current levels until after this summer.

Key Quotes

“On the surface, developments in the euro area since the ECB's December forecasts suggest a pivot in risks to the downside. Inflation lies sharply below their implied December forecast (though mostly on the back of lower oil prices), and growth in the final quarter of 2018 likely came in at half the ECB's projected pace. However, we expect them to look through lower energy prices, treat recent activity disruptions as temporary, and therefore leave risks unchanged from December.”