The key European Central Bank decision due at 12.45 PM GMT, with Mario Draghi and co expected to hold off tighter monetary policy. See the Live September ECB Press Conference video below.
7 September, AtoZForex – The bank’s rate decision and the monthly press conference from President Mario Draghi will be keenly watched given recent changes in conditions.
In fact, ECB president has been largely criticised for the central bank’s big monthly asset purchases. This policy has been in place in order to boost growth. Moreover, Pound dipped against the euro ahead of the ECB decision. Meanwhile, the strong euro bringing down inflation expected to delay quantitative easing tapering.
September ECB Press Conference
‘The September meeting will bring updated set of staff projections but likely no change in policy setting. After strong survey data over the summer, the short term growth forecast could well be upgraded. But the EURUSD is turning out to be much stronger than assumed in the June. Thus, the projections the strong currency will leave its mark on the inflation forecast.
Forex and bond markets remain very sensitive to tapering speculation and that will likely see the ECB moving extremely carefully going ahead especially as geopolitical risks have picked up further. Indeed, that the ECB will lay out a full schedule for the phasing out of asset purchases this year seems increasingly unlikely and while officials still start to debate changes to policy parameters at the September meeting, a decision is unlikely to come before October.’
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