Anna 
The European Central Bank (ECB) is convening for its regular monetary policy meeting today. While experts at Commerzbank anticipate that the interest rate decision might not yield significant surprises, the meeting holds some key considerations:
Expectations of No Rate Change: The consensus among economists is that the ECB will maintain its current interest rates. All 51 economists surveyed by Bloomberg are in agreement on this expectation, indicating no rate adjustments in this session.
Potential Early End to PEPP Reinvestment: Some ECB officials have been considering the possibility of discontinuing the reinvestment of the Emergency Pandemic Purchase Program (PEPP) earlier than initially planned. The current plan calls for the end of reinvestment by the close of 2024. Although this might not appear directly related to the euro, it has broader implications. Rising global concerns about national finances are putting pressure on the euro. If the Eurosystem reduces its role as a buyer of government bonds, it could exacerbate euro-related challenges. Hence, the ECB may opt to delay a premature decision on this matter.
Market Volatility and Individual Remarks: The upcoming ECB meeting is anticipated to be relatively subdued compared to previous months. However, this does not rule out the potential for individual statements during press conferences to introduce heightened volatility. Recent history has shown that the ECB can deliver surprises that catch market participants off guard.
While the primary expectation is that the ECB will maintain its interest rates, market participants will remain vigilant for any unexpected developments, especially those related to the PEPP and its potential implications for the euro.
