Nomura discusses its expectations for this week's ECB policy meeting on Thursday.
"We expect the ECB to leave its monetary policy unchanged at its October meeting. We maintain our view that the next policy move will be in March 2021, when we think the ECB will increase its PEPP envelope by an additional €400bn. Before that we expect the ECB to step up its weekly PEPP purchases into the winter as the euro area economic recovery falters as a result of more restrictive lockdown measures," Nomura notes.
"Over the past two months, ECB communications have generally been, in our view, less dovish at the margin, and we expect this to be the case at next week’s press conference," Nomura adds.