Will ECB Meeting Bring Any Surprises?
The European Central Bank (ECB) is holding a meeting on monetary policy today. Analysts expect, that the main-refinancing rate will be held unchanged at 0.00% and the central bank will keep interest rates at present level at least through summer of 2019. Investors will look for new recommendations from the ECB confirming the recent slowdown and the political confrontation between Brussels and Rome because of Italy’s spending budget.
After a decade of monetary policy experimentation the ECB appeared back in control, but with a number of risks suddenly surfacing, it may be more complicated than anticipated. Investors may still want to listen carefully to any nuances in Draghi’s comments, given the equity market rout in October and data this week that showed Eurozone economic momentum is slowing to the weakest in more than two years.