ECB Draghi in Focus as German Confidence Drops

The president of the European Central Bank (ECB), Mario Draghi, is expected to conjure his powers of allusion on Thursday with uncertainty over Brexit still looming large on the horizon.

“Resilient markets post-Brexit allow the ECB to only hint at new stimulus, which we expect in September,” analysts at Bank of America Merrill Lynch said in a note Tuesday while referencing Monty Python’s famous “nudge, nudge, wink, wink” sketch.

The Italian economist – well known for tough “whatever it takes” promises – will be up in front of the cameras following the ECB’s rate decision Thursday where the bank is widely expected to hold off on any new announcements or rate cuts.

The Frankfurt-based institution is already pumping 80 billion euros ($88 billion) a month into the fragile euro zone economy and a lack of fresh data means it will likely hold off on any further moves following the U.K. referendum. Economists are expecting a hit to global growth due to Brexit and euro zone economies are expected to be particularly vulnerable. There’s the added complication that the vote will also add weight to anti-EU sentiment across the region.

via CNBC

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