ECB: Upgrade to the economic assessment is very likely – RBC CM

In view of analysts at RBC Capital Markets, an upgrade to the ECB’s economic assessment is very likely and should be widely expected by markets.

Key Quotes

“This week’s ECB meeting again takes place against a backdrop of strengthening growth but subdued inflation. Markets are focusing on a few things: (1) what will happen to the forward guidance, (2) what will happen to the economic and inflation assessment. An upgrade to the economic assessment is very likely and should be widely expected. That in turn should see some change to the forward guidance but our rates team look for it to be at the lower end of expectations (dropping ‘or lower’ when describing future rates but not going further). We look for Draghi to ram home the message that the ECB is still far from meeting its mandate on inflation.”