A summary of the preview via Scotia:
1. It’s likely premature to expect imminent changes to monetary policy.
- The Pandemic Emergency Purchase Programme, for example, has a massive amount of unutilized space given it currently stands at about €500 billion and hence well shy of the €1.35 trillion ceiling.
2. Major forecast changes are unlikely.
3. The ECB is undertaking its own strategic review-the first since 2003-and is expected to deliver the results sometime later next year.
4. Watch for further reference to currency concerns given the nearly 10% appreciation in the euro to the dollar since May with half of that occurring since July
Overall, the meeting is likely to be heavier on jawboning risks than action, with more of the tangible policy risks being saved for subsequent meeting,