Nothing much to expect from ECB monetary policy meet

The ECB will hold its regular monetary policy meeting on Wednesday 3 June. Barclays says, "We do not expect new information regarding monetary policy: the GC council should emphasise its commitment to expansionary monetary policy and will likely repeat its commitment to continue its asset purchases at the same monthly pace at least "until the end of September 2016, and, in any case, until we see a sustained adjustment in the path of inflation that is consistent with (the ECB's) aim of achieving inflation rates below, but close to, 2% over the medium term".

Although Greece will likely be in the spotlight during the Q&A, do not expect any breakthrough in the ECB's position, especially since negotiations between the institutions and the Greek government are in a crucial phase. 

The ECB is likely to revise its annual inflation forecast for 2015 up a couple of decimal points from 0%, as oil prices have been than envisaged at the time of the March projections. May HICP inflation released earlier today actually came in at +0.3%y/y, slightly above expectations. However, this is unlikely to change the view of the GC that inflation will recover only very gradually and will not reach the ECB's medium-term target of 2% before the end of 2017 at best.