Draghi to go out with a bang

Recent comments by Mario Draghi suggest that the ECB will loosen policy sooner than we had anticipated. We now expect the Bank to strengthen its forward guidance in July and cut its deposit rate in September. Mr Draghi is then likely to go out with a bang by announcing in October that the ECB will use some of its €1 trillion of “headroom” and re-start its net asset purchases.

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