ECB is expected to leave policy unchanged – RBC CM

According to the analysts at RBC Capital Markets, ECB is expected to leave policy unchanged when it meets today and instead the focus is likely to be on possible changes in language with a number of voices coming out since the last meeting to call for a change to the ECB’s forward guidance.

Key Quotes

“An updated set of staff macroeconomic projections that are likely to see an upward revision to inflation estimates in particular, will add weight to those calls. However, the February inflation print which showed core inflation remaining unchanged at 0.9% should give the Governing Council space to stick to its recent line emphasising the lack of upward trend in core inflation as reason to look through the recent rise in inflation and maintain its forward guidance as is for the time being.”