No major expectation from ECB meet: Societe Generale

Ahead of the European Central Bank's policy meet today, Benoit Anne of Societe Generale does not expect anything major coming out of the central bank. According to him, the ECB has already delivered strong signals and it is time to watch out for Spain's next move. He believes, Spain might not ask for financial aid immediately to bail out its economy from the debt crisis and it might take another couple of weeks for this development.

Here is the edited transcript of the interview on CNBC-TV18.

Q: We have seen this risk-on rally, I guess you track emerging markets closely, you would be aware of what is going on but before that what are you expecting from the ECB, ofcourse everyone is expecting key rates to be unchanged but what are you expecting on Spain, do you see any kind of clarity emerging through today's meeting?

A: Not really. In terms of the ECB focus today, all the action has already taken place with strong signals delivered by the ECB earlier. We are waiting for Spain to formally go ahead with the request. That is not going to happen just now. I think we have probably to wait for couple of weeks more for that to come through.

Ultimately, this will be key for risky assets including emerging markets. But, today I would play down expectations of those two meetings you mentioned. To me the more reassuring component of global backdrop is the better data in the US. We have seen that with ISM, this is perhaps good news. We were concerned about the US backdrop picture but, any signs of improvement is always going to be good news for global markets on that front.

Q: More than the ECB meetings or the BOE meetings, would you say the press conference is more important where it would get a little free wheeling with Draghi, what would you watch out for?

A: The press conference is always going to be key here and we have wanted to hear a reassuring message on the part of the ECB that it continues to work as a backstop to contain any contagion risk or any meltdown as we experienced last year. We are going to look for that indeed. But, relatively low expectations today. I would be surprised if something major happens.

Q: You do not think he will update you on the Spanish situation as to when Rajoy might move or he may not update you something on the Troika discussions in Greece, such juicy details confirmed by the ECB will not emerge you think?

A: Yes, I would doubt it. Especially we have heard a lot about words but, I think the market is waiting for the move and proper action will only occur when Spain goes ahead with the formal request but, I think we will have to wait for few weeks.