Today focus is on the ECB meeting. We do not expect rate cuts or QE in connection with the meeting but all options are expected to be left open. After Draghi's dovish speech at Jackson Hole the statement could include comments that there are signs that medium-term inflation expectations have started to de-anchor and that the ECB is ready to go down the QE path in case it continues. We expect the ECB to reveal more details about the ABS programme, which should contribute to further credit easing.
We have published five ECB research papers ahead of the meeting, in which we analyse the implications of the easing measures taken in June. We consider the dynamics in the TLTROs and the market implications of the development in liquidity and the introduction of negative rates. We also analyse the impact on growth and inflation followed by our view on the ECB's policy going forward.
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