MUFG: The ECB will highlight the risks to economic growth and is unlikely to send a new signal

On April 16, Henry Cook, head of European economic research at Mitsubishi UFJ, said in a report that the ECB’s statement at Thursday’s meeting may contain a “dovish adjustment” that may highlight the risks to eurozone growth. Thursday’s rate cut looks like a straightforward decision, and it’s likely to be the same in June. However, given the high level of uncertainty about trade policy and the timing of new fiscal stimulus, the ECB is unlikely to send many new policy signals. In the absence of a clearer shift in the hard data for the Eurozone economy, policymakers may want to maintain a great deal of flexibility. The ECB is expected to cut interest rates three more times this year, bringing the deposit rate to 1.75%.