ECB to start hinting at policy change as the year progresses – Rabobank

The analysis team at Rabobank suggests that the ECB’s April meeting seems too early for further changes in guidance, but Rabobank expects the ECB to start hinting at policy change as the year progresses.

Key Quotes

“We expand on our expectations of the timeline for ECB policy normalisation.”

“After exploring alternative options, we conclude that the ECB will most likely taper asset purchases fully before the Governing Council starts looking at its interest rate policy. Asset purchases can then be reduced to zero during 2018H1, and we don’t expect the first deposit rate hike before December 2018.”