7 Feb 2014
Flash: ECB ready, but not rushed to take action - Danske Bank
FXStreet (Barcelona) - Sverre Holbelk, Senior Analyst at Danske Bank notes that the ECB is in no rush, but raised the bar for further action.
Key Quotes
“Even though the ECB monitors money- market volatility and noted that January inflation was lower than generally expected, the ECB kept rates unchanged and did not introduce any non-standard measures.”
“Rather, ECB President Draghi said the central bank is awaiting more information on consumer prices, bank lending, gross domestic product and recent strains in emerging markets to better assess the inflation outlook. In March the ECB will publish inflation forecasts for 2016, which could provide a justification for additional easing.”
“Overall, however, the ECB appears to be quite patient with the current low inflation readings. Draghi pointed to improving domestic demand and the low inflation instead being driven by food and energy, and overall, the bar for further easing seems to have been raised.”
Key Quotes
“Even though the ECB monitors money- market volatility and noted that January inflation was lower than generally expected, the ECB kept rates unchanged and did not introduce any non-standard measures.”
“Rather, ECB President Draghi said the central bank is awaiting more information on consumer prices, bank lending, gross domestic product and recent strains in emerging markets to better assess the inflation outlook. In March the ECB will publish inflation forecasts for 2016, which could provide a justification for additional easing.”
“Overall, however, the ECB appears to be quite patient with the current low inflation readings. Draghi pointed to improving domestic demand and the low inflation instead being driven by food and energy, and overall, the bar for further easing seems to have been raised.”