“This week we do not expect any significant announcements from the ECB. Growth data continues to indicate that the recovery is underway and many members of the ECB Governing Council continue to emphasize that the increase in the harmonized index of consumer prices is probably transitory. We therefore expect Lagarde to support the need to continue with the current monetary policy in order to achieve inflation targets “. This was stated by Peter Allen Goves, Fixed Income Research Analyst at MFS Investment Management, in view of the ECB meeting scheduled for Thursday 28 October.
According to the expert, the key decisions regarding the post PEPP QE will likely be postponed to the December meeting, when the new projections will be published. At best, Goves adds, this week’s Lagarde message will run counter to market prices, which have recently seen a small rise from the end of last year.