ECB: Nothing significant will be decided - Natixis

Research Team at Natixis suggests that in the Eurozone, the main event will be the ECB meeting and they believe that nothing significant will be decided despite that inflation has already started to increase rapidly.

Key Quotes

“Even though it seems that the board of governors is assessing the situation with outdated forecasts we also believe that they are aware of this fact. Knowing that inflation will very likely reach a peak in April before declining gradually suggests that at this stage the ECB will not make any decision to change its current stance.”

“Consequently, the Q&A will likely be demanding for Mario Draghi since he will have to maintain a stance not totally supported by the picture reflected in the ECB forecasts. All in all, we do not expect a lot from this meeting. The ECB survey of professional forecasters expected on Friday 20, after the meeting, would be in this sense much more interesting.”