Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

FxWirePro: What to expect from ECB ahead?

Today European Central Bank (ECB) is to provide further guidance in policy meet. Result to be announced at 12:45 GMT, followed by the press conference at 13:30 GMT. The meeting is to be held in Frankfurt, Germany.

Current policy measures–

  • Deposit facility rate at -0.40 percent
  • Refinancing rate 0.00 percent
  • Marginal lending facility rate at 0.25 percent
  • ECB had launched four new TLTROs.
  • Assets can be bought at yields below the deposit rate.
  • In the last to last meeting, ECB tapered asset purchases to €30 billion and extended the program until September 2018. The current program was due to expire at the end of 2017.

Expectation today –

  • European Central Bank (ECB) is expected to maintain its current policy.
  • With ECB announcing clear path until September, an action is likely.

What to watch out for –

  • Change in inflation forecast.
     
  • Take on tapering or on the future path of monetary policies.
  • ECB’s take on stronger euro.
  • The high level of NPLs in European banks, especially in Italy.
     
  • Does ECB leave the door open for further interest rate cut or the next move to be a hike? How soon might such come?
  • Concerns with regard to European banks’ balance sheet and call for the creation of a pan European bad bank.
  • Contingency plans from the Brexit fallouts.
  • What are the major risks for Eurozone in 2018?
  • Whether ECB seems comfortable with the level of the Euro or does Draghi talk the currency down.

Impact –

The euro has remained upbeat despite the European Central Bank (ECB) extending the asset purchase program beyond expectation. The euro is currently trading at 1.24 against the dollar.

 

 

  • ET PRO
  • Market Data

Market-moving news and views, 24 hours a day >

2018-08-20 07:04:43
0m
2018-08-20 07:00:56
0m
2018-08-20 07:00:48
0m
2018-08-20 07:00:32
0m

August 20 06:00 UTC Released

DEProducer Prices YY

Actual

3 %

Forecast

3 %

Previous

3 %

August 20 06:00 UTC Released

DEProducer Prices MM

Actual

0.2 %

Forecast

0.2 %

Previous

0.3 %

January 31 00:00 UTC 289867289867m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 289867289867m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 301687301687m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 289867289867m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 301687301687m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 289867289867m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 289867289867m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 289867289867m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.