HALISTER1: Morgan Stanley Expects ECB Action in December Instead of Sept.

Morgan Stanley Expects ECB Action in December Instead of Sept.

(Bloomberg) -- In December, ECB may announce another 10bps deposit rate cut, a 6-month extension of QE and the inclusion of senior bank bonds in the purchase program, economists including Elga Bartsch write in a note.
  • Expects ECB Governing Council to wait and see rather than pulling the trigger on policy action
    • There were no hints of concrete ECB policy action being in the pipeline at the July press conference
    • Activity data continue comes broadly in line with the June projections, which are likely to stay broadly unchanged from the June forecasts
    • It seems that the ECB staff only need to make minor changes to the assumptions underlying the forecasts
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
2539Z GR (European Central Bank)

People
Elga Bartsch (Morgan Stanley & Co International PLC)

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