ECB: Easing discussion – Nordea Markets

Nordea Markets analysis team are expecting that the ECB’s April meeting will continue to analyse the future economic outlook and what that implies for the details of future policy actions.

Key Quotes

“While no concrete decisions will be announced, the discussion is expected to be active.”

“We do not expect concrete policy actions to take place in April as the discussion will focus probably on the details of the TLTRO III and Draghi will also face questions about the possibility of a tiered reserve system.”

“If data continues to be very weak we expect the next round of easing measures to take place in June.”

“From the ECB’s perspective, especially worrying could be if the recent decline in the market-based inflation expectations turns out to be persistent and becomes broadly based.”

“It will be hard for the ECB to surprise the EUR negatively.”