The firm now says the ECB won't hike rates in 2020 either

ECB

In a note to clients, Commerzbank strategist, Cristoph Rieger, says that "the downgrade of the ECB's economic projections will not be the last" while also seeing 10-year German bond yields falling to 0.4% by the end of next year; lower from the previous forecast of 0.65%.

Adding that:

"Later this year, when the ECB needs to shift the forward guidance further into 2020, we thus expect it to implement a tiered rate mechanism, granting banks allowances for excess reserves that are not subject to the then still prevailing -0.40% depo rate."

The firm previously saw the ECB hiking rates next year and I reckon they won't be the last to start revising calls on that over the coming months. As mentioned yesterday, market pricing is still for the ECB to raise rates by 15 bps some time around 2H 2019, so expect that to also experience some adjustments if economic data continues to be less supportive.