Back
3 Apr 2014
ECB dovish but not going to ease – Rabobank
FXStreet (Guatemala) - Strategists at Rabobank explained that despite Draghi’s renewed dovishness, they do not expect the ECB to introduce further easing measures in the very short term (until June), and in particular the time is not yet ripe for QE.
Key Quotes:
“The ECB will remain in the wait-and-see mode to examine how inflation will progress in the coming months”.
“The central bank will use its time to think what form any possible QE would take and which form is allowed under the treaty, as well as think about the other flavors of unconventional policy at their disposal”.
“The first likely moment for further action would be in June, when new economic projections will be released and the temporary effects on inflation have faded”.
“However, although the cannon has now been rolled out, it remains unclear with what type of ammunition the ECB will load it”.
Key Quotes:
“The ECB will remain in the wait-and-see mode to examine how inflation will progress in the coming months”.
“The central bank will use its time to think what form any possible QE would take and which form is allowed under the treaty, as well as think about the other flavors of unconventional policy at their disposal”.
“The first likely moment for further action would be in June, when new economic projections will be released and the temporary effects on inflation have faded”.
“However, although the cannon has now been rolled out, it remains unclear with what type of ammunition the ECB will load it”.