The European Central Bank meeting today is expected to result in an expanded quantitative easing program.
- The statement from the meeting is scheduled at 1145GMT
ECB President Lagarde remarked last week that the ECB's "mild" forecast scenario for the economy is "out of date." As a reminder:
- 'mild' was a projected GDP fall of 5%
- medium is -8%
- more severe scenario is a contraction of 12%.
There will be updated forecasts issued from today's meeting. Gvien the downgrade of the forecast the expected outcome is
- holding policy rates unchanged
- but an increase in the size of the Bank's quantitative easing programme
The €750bn Pandemic Emergency Purchase Programme is likely to be expanded to circa €1 trillion, at least, and even more, to €1.25, seems a higher probability.
