The European Central Bank (ECB) is set to hold steady this week as recent economic indicators point towards a slowdown of the euro zone economy. Speculation is also rising that the ECB is considering pushing the end of its quantitative easing (QE) program further into the future.
"We expect no policy actions and a broadly unchanged language at the ECB's policy meeting (Thursday)," Dirk Schumacher, research analyst at Natixis, said in a note last week. "We expect, however, a hint for a decision on the asset purchase program (APP) at the June meeting."
That would be the best possible outcome as markets are longing for more information about the central bank's exit strategy from its ultra-loose monetary policy. Until now, ECB President Mario Draghi always reiterated that the QE would last until September this year, at least.