ECB Preview: A new chapter of dovish tightening – Danske Bank
According to analysts at Danske Bank, the new reinvestment strategy could be the most interesting part of next week’s ECB meeting, when a formal announcement about the end of the net asset purchases is set to be made.
“Although the stakes are high at the meeting, we expect Draghi to try to be as ‘dull’ as possible in order not to move the markets.”
“Growth assessment as well as new forecasts (including 2021) will be closely monitored. We will pay close attention to the wage growth assessment.”
“Given the current dovish market pricing we have a hard time seeing how the ECB can deliver a message that would lead to a dovish market reaction.”