ECB seen on hold this year – UOB

Lee Sue Ann, Economist at UOB Group, anticipates that the ECB could refrain from modifying its monetary policy conditions until the end of next year.

Key Quotes

“The service sector slowdown is in turn impacting price growth, implying little upside as far as the inflation outlook is concerned. Thus, we continue to anticipate rates to remain unchanged until end-2021. Christine Lagarde may not have to change policy for some time as the latest stimulus package remains in play; but providing more stimulus further out could be complicated because so much of the ECB’s balance sheet has already been deployed”,