In the euro area flash inflation will be released. We have revised our forecast for euro inflation up to 0.7% as the German HICP was not as low as we had expected. Although the expected decline puts pressure on the ECB, we do not expect more easing at the meeting on Thursday. Related to lower inflation it is likely Draghi will refer to the latest cut and repeat that it takes time for the full effects of the monetary policy to materialise.
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Danske Bank