ECB should get back to a more normal attitude - Natixis

Mario Draghi may have prepared the markets too much for a dovish meeting this Thursday by stating before Parliament that monetary conditions need to remain very accommodating for the time being suggests Jean-François Robin, Research Analyst at Natixis.

Key Quotes

“And yet, with a series of good figures at European level, and a political risk as we wait for Italy, that is no longer systemic, the ECB should get back to a more normal attitude. It should publish new growth and inflation outlooks. Growth should be revised upwards while inflation could go in the opposite direction after a CPI Flash at only 1.4% in May even if this slowdown was broadly expected. As far as the press release is concerned, with a set of risks that could now be described as balanced, another stop should be taken. The market could react somewhat in an upwards direction, and the eonia curve could pick up a little.”