Euro: ECB stimulus now seen coming in June rather than March – ABN Amro
|Economists at ABN Amro remain of the view that the ECB will announce additional stimulus in the coming months as economic growth and inflation will likely disappoint ECB expectations.
Key quotes
“We now expect a package to be announced in June rather than the upcoming meeting in March. This is because ECB officials have signalled that it is too early to make a judgement about whether the medium-term outlook has changed in the face of the economic shock related to the spread of the coronavirus.”
“We expect the ECB to cut its deposit rate by 10bp, announce a step-up of net asset purchases to EUR 40bn and increase the maturity of TLTRO loans by another year at the June Governing Council meeting.”
“A full 10bp ECB rate cut is now priced in for the July meeting, while a week ago, only a 60% chance of a cut was priced in by the end of this year. This is only a little later than our updated base case for the ECB.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.