A dovish message likely from ECB once again

The ECB has committed quite firmly to the view that policy rates have bottomed, Governor Erkki Liikanen just recently confirmed this view. 

Of course, when the facts change, also ECB policy makers can change their mind. However, cutting the deposit rate is only an option if the ECB deems that QE has become ineffective. 

"Once again a dovish message is expected from the ECB but no new policy steps. Draghi will repeat that the QE programme will be fully implement and more will be done if needed. Ultimately at least a QE extension will be needed, but that will not be announced yet", says Nordea Bank.

For now, it hasn't, although the ECB's self-praise may be a bit overdone. Cutting rates would undermine the ECB's credibility with no obvious gains that couldn't be reached by other means. 

"A rate cut is quite unlikely and certainly not high on the ECB's list of policy options. At this point, soft words will probably be enough to push bond yields and the euro modestly lower", added Nordea Bank.