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Full ECB Preview: Draghi Parting Gift - A Bazooka Or A Water Pistol?
09-12-2019, 02:42 PM,
#1
Full ECB Preview: Draghi Parting Gift - A Bazooka Or A Water Pistol?
Full ECB Preview: Draghi Parting Gift - A Bazooka Or A Water Pistol?

Tomorrow, at 13:45am CET (7:45am ET) the will unveil its Draghi "Swan Song" Monetary Policy Decision, with a press conference Due At 13:30BST, (08:30ET)Surveyed analysts look for the ECB to cut the deposit rate by 10bps with the Main Refi and Marginal Lending rates seen unchangedMarkets currently price in around a 40% chance of a deeper cut to the deposit rate of 20bpsFocus will be on any potential complimentary easing measures alongside expected rate reductionsECB staff economic projections will likely reflect the downbeat prospects for the Eurozone economyINTRODUCTIONWill outgoing ECB president Mario Draghi's "swan song" decision - the one in which he is widely expected to cut rates deeper into negative territory and resume sovereign and/or corporate QE - be a bazooka or a waster pistol? That's the question.Markets currently fully price in a 10bps reduction in the deposit rate to -0.5% with just over a 40% chance of a deeper cut of 20bps.Read the entire article
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