Analysts at Morgan Stanley are out with their thoughts on what to expect from today’s ECB rate decision, followed by the ECB Chief Draghi’s press conference.
Key Quotes:
“The tone of the upcoming press conference, if not the forward guidance itself, will likely signal that QE is less needed.
Unlike the market, which prices in almost two hikes next year, we only see one small depo rate rise.
We believe that the press conference on March 8 will likely see some small changes to the central bank language, to prepare the markets for the end of QE in 4Q18.
At a minimum, we think that the Q&A will likely emphasize that things are getting better and so, implicitly, that the degree of monetary accommodation can diminish.”
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