The ECB is seen leaving interest rates steady at record low levels during its April 2021 meeting. No changes are expected either to the €1.85 trillion pandemic emergency bond purchasing programme but investors will be looking for clues on tapering. Last month, the central bank pledged to increase the pace of asset purchases, amid a surge in bond yields. Since then, central banks across the bloc have spent an average of €17 billion euros a week, up from about €14 billion since the start of the year, and many economists expect the ECB to slow bond-buying by July. President Lagarde will likely maintain a dovish tone during the regular press conference and traders will keep an eye on any comments about the economic outlook, inflation, fiscal stimulus and the impact of a slow vaccination rollout.
