ECB Preview: A no change in policy is unanimously expected - NAB

Analysts at National Australia Bank (NAB) provides a brief preview of the ECB monetary policy decision due on the cards later in the European session.

Key Quotes:

“The ECB meeting is the highlight in Europe and again like Japan, a no change in policy is unanimously expected.”

“The fact that a Le Pen - Mélenchon (both eurosceptics) outcome was averted in the first round of the French election and that Macron, a pro-European centrist, is in pole position to win, is no doubt a positive for the ECB.”

“Economic activity indicators are also at a six year high, but with the inflation wobble in March we suspect the Bank and President Draghi will look to keep things stable and wait until the June meeting to make any shift to its forward guidance.”

“A tight lipped Draghi at the press conference could hamper EUR gains, but he could find it hard not to talk the economic outlook up.”