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ECB to cut macro forecasts, leave policy unchanged

The ECB is likely to reduce its forecasts for economic growth at its meeting next week and to again stress that it has the necessary tools to respond if the recent slowdown worsens. But we think it will stop short of making any changes to its forward guidance or policy settings at this stage. And while President Draghi is likely to talk up the prospect of a fresh round of refinancing operations, we don’t expect any details at this meeting.

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