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.