On Thursday, when the European Central Bank officials are going to meet, there is not many policy changes which are expected but their head Christine Lagarde may still drop a few hints about the path which the bank is looking ahead at.
The economists indeed at the Bank of America have contended that the participants of the bank have ignored the minutes of the December meeting that had showed the worries a few of the officials had over the adverse side effects potentially of the negative rates of interest and may get caught napping as they are looking ahead at launching the review of the strategy of the bank.
The confidence in the outlook of the region had been improving already in the month of December before the trade deal of United States and China and the elections in the United Kingdom which had helped the further removal of uncertainty as per the economists. The green shoots when it comes to the economic data and potential for the update further in the core inflation may spark the talk about shifting the risk balance facing the economy of Europe from titled to the neutral extremely soon.
Euro hadn’t changed much against the dollar on this Wednesday. The shared currency was under pressure from the new year turnover however it has fallen just close to 1.2 % since the beginning of 2020. They had written that they will be listening to the President Lagarde carefully regarding the risk balances and the aims and timelines of their strategy review. There would be no surprise they feel if there are some nuggets added which challenge the view of ECB being in an autopilot mode in the year.