Since July, when ECB President Mario Draghi proclaimed "confidence" in the outlook for growth and inflation, "the balance of risks has become more unfavourable," say UBS analysts. Back then, Draghi judged risks to growth in the 19-nation single currency area "broadly balanced". EU officials have reassured financial markets in recent days, but the so-called "yield spread" -- which measures the difference in perceived risk between Italian and ultra-safe German government bonds -- remains uncomfortably high. New forecastsECB watchers will also be keen to get their hands on new forecasts from the central bank staff looking as far ahead as 2020, but no major changes are expected. More interesting for financial players could be hints about how the central bank will reinvest the proceeds as its massive 2.5 trillion-euro stock of corporate and government bonds matures.

Source: Philippine Star September 11, 2018 03:11 UTC