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Wednesday 6 June 2018

The ECB meeting is approaching and change may be significant

The ECB is expected to take test trials on the outcome of its monetary policy at its next week's meeting, which may end with publicly announcing the plans when we will see an exit from this policy.
It is very likely that ECB President Mario Draghi will use the June 14th summit in Latvia as an opportunity to discuss the end of the buy-back program, according to market observers.
Currently, bond purchases are scheduled to take place at least until September. However, there is no more clarity about the time of their end, which brings serious uncertainty among market participants.
And many market observers see a good time at the ECB meeting to "prepare the ground". Dearly, it is possible to use the press conference to signal that a decision on the end of the stimulus could come at the July meeting of the bank.
Even if the topic is concerned, there would be serious progress on the way out of the incentives, comment market observers.
The June decision may also be accompanied by new economic forecasts on the euro area by the ECB, which also give some signals to investors. If the forecasts are good, investors may decide that we will see a recent exit from the incentives.


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