RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
BOJ Signals Imminent Interest Rate Hike Amid Strengthening Economic Conditions 
Fed Rate Cut Odds Rise as December Decision Looks Increasingly Divided 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Japan’s Finance Minister Signals Alignment With BOJ as Rate Hike Speculation Grows 
U.S. Stocks End Week Higher as Markets Anticipate Fed Rate Cut 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
Asia’s IPO Market Set for Strong Growth as China and India Drive Investor Diversification 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
U.S. Stocks Rise as Cooler Inflation Boosts Hopes for Fed Rate Cut 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
RBA Signals Possible Rate Implications as Inflation Proves More Persistent 
The European Central Bank (ECB) is not expected to deliver any new policy signals, thus rendering the upcoming meeting on September 13 to be an uneventful one, according to the latest research report from Danske Bank.
In the July meeting and subsequent minutes, the ECB/Mario Draghi pointed to content on (1) economic developments albeit highlighted risks and (2) markets' response to the firmer forward guidance.
The new staff projections for 2019 and 2020 may be revised down marginally compared with the June projections. The central bank, is expected to revise down marginally both the headline and core inflation profiles (1.8 percent core by end-2020).
Further, the ECB is expected to confirm the new EUR15bn purchase rate from October. The CB would also be expected to change the wording 'anticipate' (regarding ending APP this year) to a stronger word.
Such a change would lead to a limited market reaction as a conclusion by the end of the year is already expected. Any change to the APP stance that would materially move the market should be driven by a very soft wording entailing an APP extension beyond December 18.
"We may see an extension of the APP reinvestment period to up to six months (effective October 2018) from the current 'up to month t+2'. On balance, we expect this change to be announced, although it will have limited market impact now while adding flexibility to the implementation of the reinvestment scheme," the report commented.
