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1 Jul 2014
Easy going for the ECB this month - BAML
FXStreet (Guatemala) - Analysts at Bank of America Merrill Lynch explained the ECB has an easy meeting ahead in July.
Key Quotes
"The ECB has an easy meeting ahead in July. After the package of measures put forward in June, we expect it to stay on hold."
"Draghi might provide more clarity on the design and expected impact of the June measures and on how the central bank will ensure funds are channelled to the real economy. We would expect the ECB to signal further action if inflation disappoints, with no mention of sovereign bond purchases, since we believe there is still little consensus on moving into QE. Draghi will likely insist on the ABS measures in the pipeline and argue that the ECB will want to wait 3-4Qs to see the impact of the package before moving ahead."
Key Quotes
"The ECB has an easy meeting ahead in July. After the package of measures put forward in June, we expect it to stay on hold."
"Draghi might provide more clarity on the design and expected impact of the June measures and on how the central bank will ensure funds are channelled to the real economy. We would expect the ECB to signal further action if inflation disappoints, with no mention of sovereign bond purchases, since we believe there is still little consensus on moving into QE. Draghi will likely insist on the ABS measures in the pipeline and argue that the ECB will want to wait 3-4Qs to see the impact of the package before moving ahead."