We do not expect much news from the upcoming ECB meeting. European yields have stabilized since the central bank “accelerated significantly” the pace of PEPP purchases in mid-March. Inter-meeting economic data have been mixed. We believe policymakers would reinstate that downside risks to the economic outlook in the near-term, while adding some optimistic flavor over the developments in 2H21. The meeting appears to be an uneventful one. Updated economic projections will only not be released until June. On the monetary policy, the members noted last month that the PEPP purchase would increase and carry on until June. This suggests that no change is expected this month. However, the March minutes, as well as recent speeches from the members, signaled that there could be rigorous debate over the future of the PEPP after June.

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