⁍ The European Central Bank meets on Thursday, and financial markets are keen to get a sense of just how close it is to delivering another round of stimulus.
⁍ Many banks expect an expansion and extension of the Pandemic Emergency Purchase Programme (PEPP) in December, alongside latest ECB forecasts.
⁍ The ECB, which has undershot its near 2% inflation target for almost a decade, is expected to refine its goal late this year or in early 2021 as part of the review.
– The European Central Bank is expected to offer more stimulus to the euro zone’s struggling economy when it meets Thursday, but the bank’s governing council is divided over whether to take action, the BBC reports. Some members are calling for a wait-and-see approach, while others—including President Mario Draghi—want the bank to act quickly to combat the second wave of coronavirus, which has hit several countries hard. The ECB is also expected to keep its interest rates low and provide cheap loans to banks, though some members are calling for the bank to set a longer-term inflation target, Reuters reports.
Source: https://www.reuters.com/article/eurozone-markets-ecb-graphic/testing-times-five-questions-for-the-ecb-idUSKBN27B0J8