FXStreet (Łódź) - BNP Paribas economist Clemente De Lucia doesn't expect the ECB to announce any changes to monetary policy at tomorrow's meeting, as it need's time to evaluate the impact of measures implemented last month.

Key quotes

"Unwanted tightening of the policy stance, further impairments in the transmission of the monetary policy stance and a worsening of the medium-term outlook for inflation are factors which might trigger a reaction from the ECB according to its forward guidance."

"A combination of these factors is affecting the eurozone and against this backdrop the ECB launched package of measures in June which aims at easing further the ECB monetary policy stance, enhance the transmission of its stance, and eventually boosting growth and lifting inflation and inflation expectations."

"While those measures have already produced positive effects in terms of lowering interest rates both at shorter and longer maturities and cause a slightly depreciation of the euro, it is too early to gauge the full impact on the economy."

"According to President Draghi several quarters are indeed needed. This means that the ECB will not embark on further actions for a while."

"Therefore we do not expect any major change at this week Governing Council meeting. Yet, the ECB will probably continue to stress that it could do more if things go wrong."

Related Articles
  1. Forex Education

    Four Currencies Under the Spotlight in 2016

    With currencies having become the “tail that wags the dog,” in terms of their impact on the global economy, these four currencies will be under the spotlight in 2016.
  2. Forex Fundamentals

    These Currencies Are The Biggest Losers Of The Stock Downturn

    Here’s a list of the hardest-hit currencies amid the global stock market mayhem.
  3. Forex Strategies

    Will the Euro Continue to Rally? (EUO)

    The euro is rallying. Should investors chase this performance or is the real opportunity on the other side of the trade?
  4. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  5. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  6. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  7. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  8. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  9. Investing

    Financial News Comparison: Bloomberg Vs. Reuters (BAC, GOOG)

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  10. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
COMPANIES IN THIS ARTICLE
Trading Center