The European Central Bank’s monetary policy meeting today is quite likely to pass off as a non-event as some of the major Eurozone member nations gear up for elections that could potentially unsettle the current status quo.
The European Central Bank is unlikely to add further to the turmoil especially with no major reasons to justify any policy changes. On the contrary, the ECB governing council is expected to deliberate on the recent string of inflation numbers which have been steadily rising.
Despite headline inflation rising to 2% in February (flash estimates), core inflation figures have remained stubbornly anchored to 0.9% and hasn’t budged much. The ECB is therefore not expected to make any changes but could give moderate inflation projections in the near future.
But given the uptick in headline consumer prices, the markets are likely to be more vulnerable to any hawkish rhetoric from the ECB.
Read more: https://www.orbex.com/blog/2017/03/ecb-march-meeting-no-changes-hawkish-undertones-expected/