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."
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