ECB Preview: Expectations from the first ECB meet of 2016 by 11 major banks

By FXStreet FXStreet (Delhi) – We are just a few hours away from the first ECB Interest Rate Decision of 2016. The following are the expectations as forecasted by the economists and researchers of 11 major banks. After last month’s package of measures, ECB is likely to take a pause in today’s meet and all the 11 major banks are expecting Mr.Draghi to sound dovish and likely to indicate that the door is still open to further easing in the coming months should the situation warrants.

RBS

We expect the ECB to leave its deposit rate and asset purchase programme unchanged. Further easing initiatives would probably damage the ECB’s credibility coming so soon after last month’s package of measures. Mr Draghi will nevertheless surely indicate that the door is still open to further easing in the coming months at the post-meeting press conference. We presently expect further action in Q2 and specifically at the June meeting. If, however, the global environment were to worsen by even more than we envisage, there is a reasonable chance that the ECB could act again as soon as March.

ING

The latest turmoil on financial markets has fed speculation about new ECB action. However, as the Eurozone currently seems …read more

Source:: FX Street