ECB likely to maintain its dovish bias - Rabobank

The ECB will announce its decision on Thursday and the refusal of core inflation to rise is a key reason for the central bank to maintain its dovish bias, according to Rabobank’s ECB watcher Elwin de Groot.

Key Quotes 

“That said, Elwin sees no strong reason yet for the Governing Council to drastically change course in September given the streak of monetary expansion measures since December last year.

Meanwhile, Reuters reported that the ECB may soon be forced to follow the Bank of Japan’s example and buy equities if it runs out of eligible bonds to purchase for its EUR 1.7 trillion stimulus programme.”