Goldman Sachs Research previews next week's April ECB policy meeting.

"Governing Council members have signalled that they do not need to rush into a decision, and a hold at next week's meeting is therefore highly likely. That said, the communication has consistently flagged that inflation risks remain to the upside and that the ECB needs to act if signs of inflation persistence emerge," GS notes.

"The tone of the press conference is likely to mirror the recent communication, with President Lagarde noting that the Governing Council will watch for second-round effects and stands ready to act to ensure inflation returns to 2% over the medium term.

Looking ahead, we maintain our baseline of 25bp hikes in June and September to a peak deposit rate of 2.5%," GS adds.