Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

No new policy signals expected from ECB at July 26 meeting; rate hike seen in December 2019, says Danske Bank

The European Central Bank (ECB) is not expected to deliver any new policy signals at its meeting on July 26; however, the central bank is expected to hike rate in December next year, according to the latest research report from Danske Bank.

Draghi’s most recent public appearances in Sintra and at the European Parliament shed no new light on its policy stance, albeit at the EU summit he is said to have voiced concerns about private investment.

Headline inflation was on target in June, but are set to decline towards the end of the year. More important, core inflation dynamics were subdued in June, and only a modest and gradual increase is expected.

The ECB will also take note that oil prices are down some 10 percent in EUR terms since its cut-off date feeding into its June projections, which supports the view that headline inflation will peak in July and decelerate thereafter.

Global trade war concerns are still lingering in the background and the ECB has acknowledged that downside risks to growth due to the threat of protectionism have become increasingly prominent.

Meanwhile, suring the last EU summit at the end of June, the media reported that Draghi said an ‘escalation of current trade tensions can have a larger impact than currently anticipated on the bloc’s economy’ and also that ‘uncertainty and the lower confidence are having a negative, visible impact on private investments’.

  • ET PRO
  • Market Data

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

April 19 12:30 UTC Released

USHouse Starts MM: Change

Actual

-0.3 %

Forecast

Previous

-8.7 %

April 19 12:30 UTC Released

USHousing Starts Number MM

Actual

1.139 Mln

Forecast

1.23 Mln

Previous

1.162 Mln

January 31 00:00 UTC 638784638784m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 638784638784m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 650604650604m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 638784638784m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 650604650604m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 638784638784m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 638784638784m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 638784638784m

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.