More policy easing to come from the ECB, Citi believes

It’s not over yet for monetary easing from the European Central Bank, analysts at Citi told clients on Friday.

“The governing council failed to live up to the very dovish rhetoric developed by a number of members recently,” the broker said.

Nevertheless, Mr. Draghi indicated that more work would take place in the spring to “adjust some technical parameters” they pointed out.

In the opinion of Guillaume Menuet, Giada Giani, Christian Schulz, Antonio Montilla, Michael Saunders that will entail the ECB “most likely” cutting its deposit rate two more times – taking it to -75 basis points in 2016 -, a further six-month extension of purchases and probably a step-up in the pace of monthly purchases by about €15bn.