ECB: Draghi to probably dodge any questions on timing of next rate move - BNPP

Dhwani Mehta FXStreet

Analysts at BNP Paribas (BNPP) offer a sneak peek at what to expect from today’s European Central Bank (ECB) monetary policy announcement that will be followed by President Draghi’s press conference at 1230 GMT.

Key Quotes:

“Although the overall tone of data has perked up since its June meeting, we do not expect the ECB to sound much different on 26 July.

Increased confidence in inflation is somewhat offset by mounting concern about the implications of the trade war, suggesting caution at the ECB.

We think Mario Draghi will probably dodge any questions on the timing of the next rate move, referring journalists to his statement from 14 June.

A Fed-style operation twist, while possible, would be difficult to implement. In any case, we believe it would be unlikely to be announced at this stage.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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