ECB Preview: No new policy actions expected – Danske Bank

According to analysts at Danske Bank, after the ECB confirmed its 'low-for-longer' narrative at last week's Watchers conference, they are expecting Draghi to repeat his 'delayed, not derailed' inflation message, thereby no new policy signals from the ECB.

Key Quotes

“We expect Draghi to strike an overall cautious tone and the ECB to keep its downside risks assessment on growth.”

“The economic indicators are yet to show a convincing pickup but positively some stabilisation in indicators (except in the German manufacturing sector and core inflation) has been observed, which we expect Draghi to acknowledge.”

“We do not expect TLTRO3 modalities to be announced next week (not until June). We expect questions on a tiering-system but no additional colour to the discussion compared to last week comments from chief economist Peter Praet.”