Summary of Sell-Side Views on ECB Strategy Review (1/2)

Ahead of today's release of the ECB strategy review (results today at 1200BST, presser at 1330BST), a few sell-side comments of note – with the range of expectations relatively broad for the outcomes of today's release:

• Berenberg: "A shift to a straight 2% target and the move to a symmetrical approach, which explicitly allows for temporary overshoots, would raise the inflation target and thus signal an even softer policy stance. In practice, it will make no major difference in our view as the majority of council members has probably been aiming for that anyway. The new strategy is more in line with that of other major central banks."
• BNP Paribas: "Strategy review may result in a non-event."
• BofA: Worries the strategy review could disappoint - "What worries us, and this has been our worry on the outcome of the review for some time, is that disagreements seem large on that overshoot: its size, its length, and how to implement it. Again, we fear that those disagreements may end up delivering an inflation overshoot promise vague enough to make everyone happy, a perfect recipe for too high real rates and a further deanchoring of inflation expectations.