ECB To Maintain Stance On Thurs; No Discussion Of Helicopter Money - SEB

After having eased its monetary policy stance significantly in March we expect the Governing Council to maintain its strategy following this Thursday’s meeting.

As recent economic data do not indicate a worsening of the inflationary outlook, the ECB’s easing bias will be retained.

The Governing Council will reiterate that the bank’s key policy rates will continue at current or even lower levels for an extended period, well beyond the time over which it plans net asset purchases.

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The council will also stress that it will ease monetary policy further, if required.

We do not expect the meeting to discuss helicopter money as various council members have already indicated legal restrictions. Given latest ECB actions, internally presented updated staff macroeconomic projections may show the bank is likely to meet its inflation target over the medium term.