ECB: July to bring no changes in actual policy - Rabobank

Analysts at Rabobank expect July to bring no changes in actual ECB policy; nor does it seem likely that the ECB will formally change their guidance at this juncture.

Key Quotes

“In order to prepare for an official decision on the future of the asset purchase programme in autumn the Council will likely use next week’s meeting to further shape the narrative.”

“We remain convinced that the ECB will taper purchases, though we do not see inflation meet any of the ECB’s self-imposed criteria.”

“Mr. Draghi will have to address this issue by further disconnecting the future of the asset purchases from the inflation outlook, probably by tying it more to the growth outlook.”