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Tag Archives: ECB policy

ECB Preview: an end to net asset purchases

With the ECB’s asset purchases due to end this month and forward guidance set to remain unchanged, a focus at next week’s policy meeting will be staff forecasts for growth and inflation. At its Governing Council meeting next week, we expect the European Central Bank (ECB) to confirm that its asset purchases will cease at year’s end. However, it is likely to stress that the end of the net asset purchase programme does...

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ECB preview: an end to net asset purchases

With the ECB’s asset purchases due to end this month and forward guidance set to remain unchanged, a focus at next week’s policy meeting will be staff forecasts for growth and inflation.At its Governing Council meeting next week, we expect the European Central Bank (ECB) to confirm that its asset purchases will cease at year’s end. However, it is likely to stress that the end of the net asset purchase programme does not represent a tightening of its policy stance. We also think the ECB will...

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The ECB’s steady hand

Another ECB meeting, another balanced message of confidence and prudence. Unsurprisingly, the statement mentioned the deterioration in the data flow since March, but our impression is that the ECB is largely brushing off concerns about a soft patch in the economy for the moment. Indeed, Mario Draghi described the recent “moderation” in growth as the result of a pullback in sentiment from elevated levels, with economic...

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The ECB’s steady hand

The ECB Governing Council acknowledges “moderation” in the pace of the euro area's recovery. It may wait until July before announcing its next policy decision.Another ECB meeting, another balanced message of confidence and prudence. Unsurprisingly, the statement today mentioned the deterioration in the data flow since March, but our impression is that the ECB is largely brushing off concerns about a soft patch in the economy for the moment.ECB president Mario Draghi said that the Governing...

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Another broad-based rise in PMI… a headache for the ECB?

The so-called ‘Euroboom’ is showing no sign of abating as euro area PMI indices rise to new highs, making it increasingly difficult for the ECB to justify its accommodative monetary stance.The euro area composite purchasing managers index (PMI) index surged well above expectations in November amid broad-based improvements across sectors and countries and the strongest pace of job creation in 17 years.At face value, November PMIs look consistent with real GDP growth accelerating further in...

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The ECB seeks balance between caution and confidence

Macroview Signs that inflation is picking up should not prevent ECB heads from striking a dovish tone when they meet in Vienna on 2 June Read full report here The next ECB meeting on 2 June in Vienna will be all about communication. Mario Draghi will need to strike a fine balance between confidence and cautiousness. While we expect the first upward revision to ECB staff projections since Quantitative Easing (QE) started in March 2015, including a rise in its forecast for 2018 HICP...

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