Feinschmeckeres will pay attention
ECB meeting on 13 September 2018. Rate decision at 13:45 CEST, followed by a press conference at 14:30 CEST.
Next week's meeting is one for the geeks and may contain few changes on the details and technical adjustments.
In the July meeting and subsequent minutes, the ECB/Mario Draghi pointed to content on (1) economic developments albeit highlighted risks and (2) markets' response to the firmer forward guidance.
Since then, data has broadly come in according to expectations, which we conclude does not warrant new policy signals from the ECB next week.
The new staff projections for 2019 and 2020 may be revised down marginally compared with the June projections. We expect the ECB to revise down marginally both the headline and core inflation profiles (1.8% core by end-2020). Note that we are more downbeat than the ECB on inflation projections due to the assumption on pass-through of wage growth to inflation.
To read the entire report Please click on the pdf File Below: