5 Developments to Follow Next Week – ECB Meeting

The U.S. economic calendar is mild for a week in which the holiday will be shortened as unemployment claims numbers may receive more attention than usual after the big loss in Friday's jobs report, while producer price inflation figures take the top bill. Comments from Federal Reserve officials will also be in focus after the disappointing August employment report. Stocks are likely to remain supported after employment data undermines the possibility of short-term contraction. Meanwhile, the European Central Bank is expected to discuss whether to reduce the stimulus at its meeting this week. Here's what you need to know about the ECB meeting to start the week, in our series of 5 developments to watch for next week.

4. ECB meeting

The ECB is meeting next week Thursday against calls from a financial adviser who believes monetary policy should maintain high interest rates to curb inflation, to begin slowing its asset-buying stimulus program during the pandemic period, given the recent rise in inflation. Inflation in the euro area reached the highest level of the last 10 years with 3 percent. The ECB noted that any increase in inflation could be temporary, but some officials recently moved away from this view, trying to stimulate rather than restrain economic growth. Markets are starting to respond to the potential for more sustainable eurozone inflation and reduced stimulus from the ECB.     Source: Investing.com You may also be interested 5 Developments to Watch Next Week – Fed Comments