The ECB is likely to stick to the script this month, with a weak outlook for underlying inflation justifying its plan to buy assets until at least the end of the year. The Bank will probably drop the possibility of future interest rate cuts from its forward guidance before long. But we doubt that it will be ready to tighten policy for some time yet and expect asset purchases to be tapered only gradually in 2018 before rates finally rise in 2019.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.