It is a close call, but we lean towards the ECB maintaining the pace of purchases, said Mark Wall, a chief economist with Deutsche Bank, in a research note. The dovish tilt in ECB Governing Council commentary in the last couple of weeks the doves have been dovish, the hawks have not been hawkish implies that the Council is not in the mood to take risks, he added.
Inflation has risen to levels not seen for a long time but the key questions are a) how reliable the data currently is as Covid-19 has changed consumption habits leading to a potential misrepresentation of the data? And b) how long will inflation be boosted by a post-lockdown effect?