With the news that the US Fed is set to taper its QE programme hitting euro-zone financial markets, President Draghi should provide reassurance about ongoing ECB policy support at the forthcoming press conference. While we do not expect policy changes this month, Mr Draghi is likely to confirm that the ECB is considering various conventional and unconventional policy options. We are still pencilling in cuts in both the main refinancing and deposit rates in September. And if the region remains in recession as we suspect, more long-term loans for commercial banks or support for the ABS market could follow soon after.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services