ECB preview: no action and no change in tone or guidance

The ECB’s Governing Council will hold next week its regular policy meeting. We don’t expect any change in the policy stance or language to emerge from the meeting. Neither the economic data, the updated staff projections or market developments since the last Governing Council meeting make a departure from the ECB ’s well chartered course necessary. While the discussion surrounding the Italian budget remains an important risk factor to watch, there is not much the ECB can or wants to do in response to these discussions .