ECB to send the same dovish message – Danske Bank

The research team at Danske Bank suggests that today's main event is the ECB meeting and following the latest ECB meeting in early March, market participants have speculated about the sequencing of the ECB's exit strategy and some weeks ago, the market priced in a 10bp deposit rate hike from the ECB at the end of this year.

Key Quotes

“Since then, the communication from prominent ECB members has signalled a more dovish stance and in the most recent speech from Mario Draghi he concluded 'a reassessment of the current monetary policy stance is not warranted at this stage'. We expect the ECB to send the same dovish message at the coming meeting, while we believe it will stick broadly to its current introductory statement without removing some of the soft wording.”