ECB is said to slightly lower economic growth projections in tomorrow's meeting

According to Bloomberg

• ECB is to lower Eurozone growth outlook on global demand
• ECB technical committee also said to see downside risks to growth moving forward
• Growth revisions are said to reflect weaker external demand
• Inflation outlook is to be kept unchanged

The euro is a little weaker on the headline there, with EUR/USD falling to 1.1582 from near 1.1600 earlier. EUR/JPY is also lower from 129.30 to 129.15 currently.

The central bank is set to meet tomorrow and also release its updated economic growth and inflation projections following the monetary policy decision. For some context, the ECB's June forecasts showed growth in 2018 to be at 2.1%, followed by 1.9% in 2019, and then 1.8% in 2020.

Meanwhile, the inflation outlook is for a steady 1.8% level across 2018 to 2020.

I believe slightly lower projected growth isn't enough to derail the ECB's plans to normalise policy just yet but it will start to warrant some consideration if this continues into 2019. As long as the inflation forecast and outlook remains intact, that should prevent Draghi from going full-on dovish tomorrow.