Rolling coverage of the latest economic and financial news, as investors await new growth and inflation forecasts from the ECB
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For the first time in more than two years, the ECB is expected to include a reference to the exchange rate in the “introductory statement” it publishes to present the results of its monetary policy meetings.
While its comment on the euro is likely to be bland, the wording will be closely scrutinised — especially as this week’s meeting is unlikely to produce big policy changes.
In terms of what we’re expecting today, our European economists think that the policy stance will be left unchanged, but that the ECB will reinforce their communications with a resolutely dovish message, before easing further in December with an expansion of their asset purchase programme.
That December easing would coincide with the release of the ECB’s staff 2023 inflation forecasts, which could form the basis for a policy shift.
Major European equity bourse futures looking mixed as we head to the European cash open, price action is relatively subdued and we appear to have entered the pre-ECB lull. pic.twitter.com/Zr4U8uSF07