ECB: Draghi to stress that reduction in asset purchases does not constitute tapering – RBC CM

According to Adam Cole, Research Analyst at RBC Capital Markets, the risks around today’s ECB meeting and press conference are moderately to the downside for EUR.

Key Quotes

“We again expect Draghi to go to lengths to stress that the reduction in monthly asset purchases announced at the last meeting does not constitute tapering. Although headline inflation has increased of late and is forecast to continue doing so in coming months, we fully expect the ECB to signal that it will ‘look through’ the rise, which is being determined primarily by energy price developments.”