According to analysts at Rabobank, the ECB appears to be satisfied with the current path of inflation, and since data have improved somewhat in recent weeks, this should support their confidence that Eurozone growth is stabilizing.
We don’t expect changes to the guidance that “the Council expects interest rates to remain at their present or lower levels until it has seen the inflation outlook robustly converge to a level sufficiently close to, but below, 2% within its projection horizon, and such convergence has been consistently reflected in underlying inflation dynamics.”
“We calculate that the ECB will face a shortage of supply towards the end this year.”
“Based on our global outlook we see the Eurozone economy slow down further this year, ultimately forcing the ECB to pile on more stimulus. We now expect the next move in June.”