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ECB: Not yet ready to set next steps

  • While Draghi and the updated forecasts might provide the odd clue, we don’t expect much more light to be shone on the ECB’s policy outlook this week.

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Euro area shows the UK how it’s done

  • With business confidence high, growth accelerating, and voters turning their backs on populists' politics, the euro area’s economic outlook looks increasingly bright. Sadly, the same can hardly be said for the UK. 

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The ECB: No need to rush

  • Provided the French election passes without a shock, the euro area economic recovery looks to be in good shape. 
  • So, although weak underlying inflation means the ECB will not act in the near term, the debate over when to end its negative interest rate policy is set to intensify.  

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Euro area economic outlook: Someway short of scintillating

  • Euro area economic growth remains steady not scintillating. And investors are becoming edgy about political risks.
  • So, while inflation has jumped well above expectations, the ECB’s QE programme is here to stay for a good while yet.

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Time for a change of heart at the ECB?

  • Economic sentiment in the euro area is reviving and inflation is on the rise.
  • So, having last month effectively pre-set policy for the coming year, might the ECB eventually have a change of heart?

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