Neutral tone, not much to expect

Here is what to expect at next ECB press conference on Wednesday:

• M Draghi will likely re-emphasize that the slowdown is expected to be temporary, though risks remain skewed to the downside.
• He will most likely also mention that the inflation outlook has not changed significantly, but he should remain cautious.
• The ECB is not expected to announce the modalities of the new TLTRO.
• During the Q&A session, questions about a tiered deposit rate are likely to come; we do not expect any formal announcement on this subject beyond the comments provided recently by Peter Praet. 

Overall a neutral tone, with no significant market impact.