In the view of the analysts at Scotiabank, the European Central Bank (ECB) monetary policy decision on Thursday “could be the most significant meeting to global markets.”

Key quotes

“It is fairly widely expected that President Lagarde will lead an effort to push back on pricing for hikes to the -0.5% deposit rate.”

“At present, markets are pricing most of a 10bps hike by next summer, though a return to a zero rate is well down the road.”

“Expect lots of talk of base effects, transitory drivers and slack in terms of its inflation logic going forward.”

Read: Eurozone inflation expectations hit fresh seven-year highs above ECB’s 2% target