The European Central Bank statement is Thursday 28 October 2021
A couple of earlier previews can be found here:
- ECB to push back against current market pricing for ECB rate hikes - MUFG
- Expect a slightly dovish ECB meeting; still bearish EUR/USD - Citi
A snippet now via Scotia:
- The ECB decision on Thursday could be the most significant meeting to global markets.
- It is fairly widely expected that President Lagarde will lead an effort to push back on pricing for hikes to the -0.5% deposit rate. At present, markets are pricing most of a 10bps hike by next summer, though a return to a zero rate is well down the road.
- Expect lots of talk of base effects, transitory drivers and slack in terms of its inflation logic going forward.
And, this via ABN Amro:
- Effort to push back on rate hike expectations might prove challenging - The ECB looks set to take markets to task about what it sees as unwarranted expectations for early and aggressive policy rate hikes, at its meeting later this week.
EUR tried higher overnight but did not sustain it:
