ECB Policy Meeting In Focus
The markets are trading mixed awaiting the European Central Bank’s meeting. The ECB is set to formally announce the end of its four-year long, €2.6 trillion easing program, a key move in dismantling crisis-era stimulus.
The ECB will also release updated growth forecasts. Analysts say, that the ECB intends to lower its inflation forecast for the next year, with forecasts that will be slightly weaker than the 1.7% previously expected for 2019. It is also forecast, that the prospects for economic growth were also revised downwards.
Investors are hoping to find out whether the ECB will start raising interest rates before ECB President Mario Draghi’s term ends in October next year. Money market pricing suggests investors expect roughly a 75% chance of an ECB rate hike next year, down from 100% just a few weeks ago.