ECB’s Praet speaks volume about policy future – RBS

FXStreet (Delhi) – Research Team at RBS, suggests that ECB Chief Economist Peter Praet’s comments about the potential credibility issues facing the ECB speak volumes, in our view, about the ECB’s immediate policy future.

Key Quotes

“With its inflation credibility seen as increasingly on the line, we think the ECB will not hesitate to deliver a deposit rate cut and an expansion of its QE program in December while also keeping open the possibility of further easing.”

“Mr. Praet’s clearly cautious and dovish comments may be in contrast with more hawkish comments coming from two ECB’s Executive Board members, Lautenschlaeger and Mersch, when they speak today.”