Blog

ECB Oct'19 Meeting Preview - Draghi, one last time!
Comments0

European Central Bank (ECB) head, Mario Draghi is all set to deliver this last press conference later this evening. The expectations from the meeting is understandably low given the re-start of QE and rate cuts undertaken last month.

We do not expect the meeting and press conference to generate new insight on the monetary policy outlook. With last month's decision, the direction has been set and the recent data, while very weak, was not bad enough to trigger further dovish monetary policy tweaks. The economy remains weak and yesterday's reading on consumer confidence was the weakest since January 2018. Manufacturing is struggling and governments continue to refuse to provide stimulus.

ECB, can however announce the details of the new APP (Asset Purchase Plan) implementation at the meeting, with no change to policy or forward guidance. We expect a dovish lean, given concern about inflation expectations and softer growth trends

Draghi could also pick up on his previous press conference's theme in which he emphasized the need for fiscal policy to take over. The focus will likely be on lessons learned during his 8-year tenure and the recent debate among former central bankers and CEOs of financial companies regarding the increased risks to financial stability

The next tactical reassessment will be due on 12 December, under the leadership of new ECB chief, Christine Lagarde and based on new ECB macro forecasts. Expect muted reaction to euro with both upside and downside capped.

Disclaimer

Author Image

Comment

Recent Post

  • PC Jeweller Demerges its Expo..

    What’s the deal? PC Jewelers recently announced that it would demerge its Export Division and merge with its wholly owned subsidiary - PCJ Gems & Jewellery Limited. Company c..

  • Insurance- Introduction

    Risk and uncertainty are associated with life in some of the other ways. These risks and uncertainties are increasing daily because of the increment in the speed of life. For example, i..

  • Rail Vikas Nigam Ltd. IPO

      Offer Details Price band Rs 17-19 Per Equity Share Offer Open Date Mar 29, 2019 Offer Close Date Apr 03, 2019 Lot Size..

  • Tech Mahindra Buyback

    The Board of Directors of Tech Mahindra Ltd. approved a share buyback for its investors on Feb 21, 2019. The details of the buyback include: Ex-Date: March 5th, 2019 Record Date: Marc..

  • BHEL Buyback

    The Board of Directors of BHEL approved a share buyback for its investors on Oct 25, 2018. The details of the buyback include:  Record Date: November 6th, 2018 Buyback price: Rs...