ECB to remain on hold – Danske Bank

Research Team at Danske Bank, suggests that with a rather light calendar of data releases, today's main event is the ECB meeting and they expect it to remain on hold.

Key Quotes

“The ECB has stressed that more data is needed before the growth and inflation outlook can be re-evaluated fully. Initial figures suggest resilience in economic sentiment following the UK's decision to leave the EU, so we expect the ECB to maintain its current stance.

In addition, we expect QE purchases to be maintained at the current pace, although we believe it will eventually extend the programme beyond March 2017. Regarding TLTRO II, the ECB has stated that 'additional demand could be expected for the forthcoming TLTRO II operations', which supports our view that the ECB will maintain a patient stance until the allotment results of the second TLTRO II auctions (due to be published on 22 September).”