Jackson Hole: Draghi expected to say little on policy - HSBC

ECB head, Mario Draghi, is unlikely to say anything new on the near-term monetary policy outlook in the forthcoming Jackson Hole meet, according to analysts at HSBC.

Key Quotes

“Last week, ECB "sources" were quoted on newswires that Mr. Draghi would avoid new insight on this topic in favor of sticking to the title of the Symposium, "Fostering a Dynamic Global Economy". This would be consistent with his 23 August speech in Germany, which focused on more general aspects of non-standard monetary policy, not the immediate outlook.”

“However, with the next ECB policy meeting (7 September) around two weeks away, he may not be able to avoid the issue entirely. Surveys suggest some economists are expecting an announcement on QE policy beyond December at that meeting. Our view is that any comments will be aimed at preventing a further rise in the euro, rather than providing anything for hawkish investors to latch on to. This would be consistent with the ECB's concerns that the euro could overshoot.”