VIEW: Nordea expect "the key ECB interest.......>

ECB: VIEW: Nordea expect "the key ECB interest rates to be kept unchanged at

next week's meeting at -50bp and 0bp for the deposit rate and the main

refinancing rate, respectively, which is in line with consensus and market

pricing. Will Lagarde's ECB be less dovish than Draghi's ECB? A month ago, we

would probably have said "no". Now, it's a soft "yes, probably". Consequently,

we change our forecast and no longer expect additional policy easing! From a

strategic point of view, we still see risks skewed to the dovish side. Markets

have largely given up pricing further easing over the coming year, and currently

price in a clear risk of a rate hike next year, which seems premature. It will

not take much weaker numbers for the markets to resume speculation about

additional easing. After all, the ECB's forward guidance retains an explicit

easing bias, which is unlikely to be removed at this point."