ECB to take an accommodative stance on monetary policy

Euro area's both monetary policy and the fiscal stance will be accomodative. The final October HICP report indicates that there is only an upward revision.

ECB's October meeting minutes did not consist any critical new insights, which reflect that governing council is prepared to test all the feasible options for monetary policy easing further, if the GC is likely to take the downside risks of inflation outlook into consideration in their December meeting.

ECB chief economist Peter Praet said this week that long-term inflation expectations remain fragile and mentioned that the ECB's experience of negative deposit rate has been more favorable than initially thought. 

"All in all, we retain our call that further ECB easing should come from a time frame extension of asset purchases until Spring 2017, possibly with a strengthening of the forward guidance and some slight changes in the parameters of the APP. In addition, we expect a cut in the deposit rate by 10bp to -0.30%", says Barclays in a research note.