What to expect by ECB and Mario Draghi today

27.04.2017 / 11:59

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The sequence of better economic data for the European economy shows stabilization. However, today the ECB is likely to remain cautious and will not make a change in the direction of the monetary policy of the Union. Currently, the Central bank buys bonds worth 60 billion euros each month.

The interest rate meeting is scheduled for 2:45 pm today and most analysts expect that there will be no change of the current 0.00% on loans and -0.40% on deposits. Most analysts' expectations are that there will be no change of current levels. This is provoked by the fact that today's meeting is between the two rounds of presidential elections in France.

At the moment German Finance Minister Wolfgang Schäuble accuses ECB of the trade surplus in Germany. At the same time French election expectations are for positive scenario and Macron is expected to win. If that is the case, France will also start asking for a change in the direction of the ECB's monetary policy.

However, ECB and Mario Draghi will remain cautious today and will keep from making hasty decisions about the direction of monetary policy. The economy stabilization and decreasing of the inflation levels to below 2% will hardly affect the ECB's decision today. Forecasts for growth in the EU economy rose to 1.7% but unemployment rates remained high at 9.5%.

Investors will be more focused on the tone of Draghi's statement today. Most analysts' opinion is that there might be a change at the meeting of the Central bank on June 8. It is more likely today that the ECB president will refrain from specific speeches and remain quite rebuked in order not to cause a serious market movements.

Trader Nikolay Georgiev

Varchev Traders

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What to expect by ECB and Mario Draghi today

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