ECB: No change next week, maybe QE extension in September - Wells Fargo

The European Central Bank (ECB) will hold its first meeting since the Brexit referendum. According to analysts from Wells Fargo the central bank will keep monetary policy unchanged but they suspect it will extend its QE program in September.

Key Quotes:

“The European Central Bank (ECB) will meet on Thursday of next week. At its pre-Brexit meeting in June, the ECB left its monetary policy unchanged. The ECB has refrained from changing its policy rates since cutting rates at its March meeting.”

“In light of the outcome of the United Kingdom referendum vote last month, we do not expect any new rate changes from the ECB at this meeting as it is still too early to justify new monetary action. However, we do suspect the ECB will extend its quantitative easing (QE) program at its September meeting.”

“At the end of next week, we will also get a first look at various PMIs and consumer confidence for the Eurozone for July, which will allow us to see the state of the economy post-Brexit.”