ECB: Language and tone will be key - Wells Fargo
|Next Thursday is the European Central Bank meeting. No change in rates is expected. According to analysts from Wells Fargo, the language and tone of the statement will be key to watch for clues on its next policy move.
Key Quotes:
“While the European Central Bank’s (ECB) is unlikely to adjust policy at its announcement next week, the language and tone of the statement will be key to watch for clues on its next policy move. The ECB’s current guidance is that it will end bond purchases in December and keep rates on hold at least through summer 2019.”
“Policymakers’ recent comments have been leaning more hawkish, as ECB President Draghi discussed “vigorous” underlying inflation pressures and other policymakers have highlighted the possibility of bringing forward the timing of the first rate hike.”
“Also out next week are the manufacturing and service sector purchasing managers’ indices (PMIs) for the Eurozone. These PMIs have clearly softened since the start of the year but remain firmly in expansion territory (i.e., above 50), consistent with an economy that is growing steadily, albeit modestly.”
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