The ECB revised down its forecast and seems to have focused on downside risks, especially for inflation. It has changed one parameter of the QE programme, and may well implement extra policy action should financial conditions tighten and/or risks to price stability become more permanent.
The outcome of Sunday's Greek referendum is uncertain. Regardless of the outcome, Greece will continue to face substantial economic dislocation in the shorter term. But, equally, our base case is that Greece will ultimately remain in the Euro area even in the event of a ‘No’ vote