Among the major central bank meetings next week, the European Central Bank's is the most in focus and consequential—especially if a policy mistake happens.
The ECB is somewhat unique in that its primary mandate is price stability, a hard focus that, on the first signs of the risk of rising inflation, has tended to lead it to raise its policy rates preemptively.
As it stands, current data places the eurozone in its framework between the baseline and adverse scenarios and closer to the first.
We expect the ECB to hold at 2% in April, guiding the market to focus on the data ahead of June.
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By Ashok Bhatia, Robert Dishner and Patrick Barbe
Among the major central bank meetings next week, the European Central Bank's is the most in focus and consequential—especially if a policy mistake happens.
