Quotes from Danske bank:
- Having sent a mixed message for some time, the ECB is increasingly signalling it is ready to take action.
- Since the February meeting, it has worked on the 2016 inflation forecast – a crucial input to its decision at the March meeting. Judging from recent comments, it will be low enough for the ECB to ease policy.
- ECB’s chief economist Peter Praet stated that ‘weakness in price development is extending to the medium term’. In that case, it is clear from the ECB’s mandate that it needs to take action.
- Other factors pressuring the ECB include weak credit growth and a sharp decline in inflation expectations in financial markets.