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Deutsche Bank Previews Next Week's ECB Policy Meeting

BY MT Newswires | ECONOMIC | 03/12/26 10:40 AM EDT

10:40 AM EDT, 03/12/2026 (MT Newswires) -- Deutsche Bank said it thinks it is highly unlikely the European Central Bank changes policy at next Thursday's meeting.

The market focus will be on what the ECB communications imply about the path forward, wrote the bank in a note to clients.

Deutsche Bank predicts: (1) the ECB to acknowledge increased uncertainty and upside risks to inflation in the near-term; acknowledging upside risks in the medium term would be more hawkish and will require more data; (2) the ECB to reiterate the flexibility it has within the current policy stance to adjust policy as soon as necessary; and (3) a strong message to underline the ECB's absolute and resolute commitment to maintaining price stability.

The ECB is ready and willing to act to avoid a repeat of the 2022-2023 inflation shock, stated the bank. Saying this loudly and clearly might be the best way of ensuring that inflation expectations remain well anchored, added Deutsche Bank.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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