ECB: Forward guidance strengthened - BNPP

Thibault Mercier, Research Analyst at BNP Paribas, notes that the ECB announced that after a 3-month tapering period it would halt quantitative easing (QE) at the end of December 2018.

Key Quotes

“Its biggest decision, however, was to switch to Odyssean forward guidance: the ECB announced that it does not expect to raise its key rates before summer 2019.”

“The June policy meeting demonstrated the ECB’s growing confidence in the convergence of inflation with its medium-term target, although this movement will still need major monetary support.”