Barclays Research discusses its expectations for tomorrow's ECB policy meeting.
"Beginning to translate the new strategy into action will be the focus of the July GC meeting. The ECB’s new strategy implies revised forward guidance will be ‘loose for longer’. In our view, there is a long way to go before the ECB delivers on its 2% medium-term inflation target. Moreover, a more flexible framework with tolerance for moderate and temporary inflation target overshoots allows the ECB to be persistent and patient," Barclays notes.
"Otherwise, we expect no changes to the very accommodative ECB policy stance at the July meeting," Barclays adds.