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ECB

This week's Governing Council meeting should be relatively uneventful, but still 'live'.

  • No material changes in monetary policy are expected at this week's GC meeting. ·
  • Markets will be focused primarily on the ECBs response to recent EUR strength and the Fed's adoption of AIT.
  • While there may be some adjustment to the staff macroeconomic projections, provided that the baseline is still intact there will be no urgency to ease further at this stage.
  • The ECB will likely need to readdress its monetary stance by end-year with PEPP being the first port of call for delivering further stimulus.

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