ECB to hold its course despite rising inflation

The ECB will not announce any policy changes next week after last month’s pledge to buy at least €60bn of assets per month until the end of 2017. President Draghi is likely to restate the Governing Council’s commitment to the plan despite the recent sharp rise in inflation and he may well reiterate that even greater support is possible. But we suspect that the hurdle for this will be high as the Bank nears its policy limits.