12:45 ECB Interest Rate Decision GBP MPC Member Broadbent speaks (unlikely to be market moving) N.B. Expectations are for the ECB to turn more dovish, as economic data has pointed to further weakness. There are several issues worth watching for in the meeting: rhetoric on economic outlook, instruments to alleviate tightening of credit conditions after the end of QE and forward guidance on interest rates. Since macroeconomic data has surprised to the down-side since the last meeting, ECB is expected to turn more dovish on the economic outlook. On the monetary policy outlook, it could refrain from making any change to the forward guidance, although the market has already pushed back their rate hike expectations.

Comments