ECB Rates Remained Unchanged with Underlying Growth Uncertainty

With the global uncertainty concerns, the European Central Bank is expected to have a  steadfast stance after the unexpected dovish meeting in June.

Investors attention is focused on the probable risk of a heightened trade war with its assessment on this issue during their meeting on Thursday.

The chief economist at Deutsche Bank, Mark Wall, said in a research that Mario Draghi will aim for a “Goldilocks” sentiment during the press conference on July 26, referred as “not too hawkish, not too dovish”.

The central bank vowed recently to keep the rate unchanged in 2019 amid trading and volatility risks and blocked “unwarranted tightening of financial conditions.”, he added.  

The plan is to stop buying new bonds at the end of the year. The responsibility is now on the purchases as part of its crisis-era stimulus program and adjusted benchmark rates. Key interest rates are marked to remain at minus 0.4 percent at least during the summer of 2019 during its previous meeting.

Risks are now centered on easing of the monetary stimulus where the economy could go down as of now. The ECB is confident enough the that the economy’s strengthening will continue.