SaxoTV

Koefoed: Why Draghi will be cautiously optimistic on the economy

701 views
June 03, 2015 draghi, draghi ecb, draghi ecb comments, draghi options, draghi reaction, ecb, ecb action, ecb balance sheet, ecb council, ecb decision, ecb draghi, ecb euro, ecb inflation target, ecb mandate, ecb meeting, ecb negative interest rates, ecb news, ecb news conference, ecb policies, ecb policy, ecb president, ecb qe, ecb rate, ecb rate cut, ecb rate decision, ecb rate decision interest rates, ecb rates, ecb rates decision, ecb stimulus, economic, economic data, economic growth, economic outlook, economic policy, economics, economy, eur, euro, euro area, euro zone, eurodollar, europe, europe growth, european, european central bank, european economy, european union, eurozone, eurozone crisis, eurozone economy, growth, growth figures, growth forecast, growth targets, inflation, inflation and investing, inflation eurozone, inflation in europe, inflation rate, inflation rates, inflation report, inflation target, interest rates, mario draghi, qe, qe 2015, quantitative, quantitative easing, quantitativeeasing, quantititive easing, saxo, saxo bank, saxo tv, trading, tradingfloor, tradingfloor.com
Saxo's Mads Koefoed expects the ECB President, Mario Draghi, to paint a more upbeat picture of the Eurozone economy when it meets later this Wednesday. He notes that inflation has picked up by more than expected, in figures released on Tuesday. He also believes that economic output for the second quarter will produce another strong print. However, he says Draghi will be cautiously optimistic.

New economic projections on growth and inflation will be produced by the ECB. Although Koefoed expects them to be similar to those of March, he thinks there will be an upward revision to both the oil price and inflation paths. He says there will be no change to the QE programme which will continue to run until at least September 2016.

With the benchmark interest rate at 0.05% and the deposit rate at -0.2%, could the ECB decide to go lower still? Mads doesn't think so although he believes they could signal a future cut.