Rates and Qe, Thursday the ECB should remain at the window – Milano Finanza

Filed chaos Brexit, now central banks are in the spotlight of the market scene. Attention is paid to the ECB on Thursday will meet to decide on possible new policy moves that President Mario Draghi might announce. Although the prevailing view is that it is all postponed the meeting in September.

“It ‘undoubtedly diminished the likelihood that Eurozone inflation reaches the 2% target in the medium term place by the ECB and the Board is considering some changes to its political configuration as we approach the September meeting, “says Adrian Hilton, bond manager Threadneedle Investments of Columbia.

on Thursday” press conference is expected to any signs of a possible cut in the refinancing rate and the fact that the ECB might change its asset purchase program in light of the decline in German government bonds available for purchase, “added the manager.

Even by Bofa Merrill Lynch experienced the difficult markets signals after Brexit are not of such magnitude as to justify new shares suffered by the ECB. “Markets that after Brexit gave endurance test will give the ECB only an opportunity to hint at new ideas that we think will come in September,” say the Bofa Merrill Lynch analysts pointing out that the interest rate market seems to expect too much from the meeting on Thursday .

“More rate cuts and the removal of the depo floor are unlikely,” concludes Bofa Merrill Lynch. On the same wave linghezza Alberto Biolzi, Head of Advisory Cassa Lombarda: “The market does not expect the creation of new monetary stimulus, although, however, could change the Q and rules to reduce the scarcity effect on purchased securities”

to Biolzi “central bankers, presumably, will wait for September before deciding on having new moves for that date also available the new economic projections. the Italian government bonds will therefore continue to be exposed, during the summer months, a volatility related to banks, the next referendum and revisions as

in April, the ECB has decided to expand its asset purchases under the Q and 60 to 80 billion monthly euro until March 2017, and beyond if necessary. He also broadened the range of purchases in order to include 5 to 10 billion of Euros per month for corporate bonds and launched four targeted refinancing operations in the longer term.