Draghi to be dovish but stress that ECB can’t do it all

The European Central Bank (ECB) is likely to maintain a dovish tone at its forthcoming policy meeting on 2nd June, forecasting below target inflation and holding open the door to further policy loosening later in the year. However, it is also likely to repeat the recent mantra that monetary policy can’t do it all and increase its calls for euro-zone governments to do more themselves to boost growth in the currency union.