ECB: No fireworks offered - ANZ

The ECB policy statement was unchanged, with rates, APP, and guidance all matching the previous statement and during the press conference, Draghi’s opinions on growth and inflation were very similar to his Sintra speech, notes the analysis team at ANZ.

Key Quotes

“Notably, the growth outlook is improving and broadening, although this has yet to translate into sustainable inflationary pressures. Headline and core inflation remain weak and “very substantial” monetary accommodation is needed. He provided no insight on if, when, and how QE would end, noting that a decision would be made in the autumn. However, his comment that financial conditions remain supportive of the ECB achieving its inflation target, implying that market moves since Sintra were not disruptive, gave the market a green light to extend moves, and EUR duly surged.”