ECB preview: on hold for now (more action later)

We expect the ECB to remain on hold at its July meeting . At the same time , we expect a clear signal for a rate cut at the September meeting by a corresponding adjustment of the ECB’s for ward guidance. The overall tone of the meeting is likely to be dovish with Mr Draghi signaling during the press conference the ECB’s general willingness to ease policy further by using “all instruments” should the economy not improve.