ECB to adjust their risk assessment for economic growth to broadly balanced - Rabobank

The research team at Rabobank expects the ECB to adjust their risk assessment for economic growth to “broadly balanced” today; this is the next ‘babystep’ towards a gradual exit from extraordinary policy.

Key Quotes

“Looking further out to the remainder of the year, the ECB is likely to face some challenges in adjusting its forward guidance that would allow it to embark on a wind down of their asset purchases from early next year.”

“Shifting the focus towards its ultra-low rates policy and maintaining sufficient flexibility to face any headwinds are likely to be two key prerequisites.”