Draghi hints ECB may hike as early as September next year – Danske Bank

Analysts at Danske Bank note that the markets reacted yesterday on the back of more hawkish ECB comments from President Draghi. 

Key Quotes

“Draghi said that the ECB sees ' a relatively vigorous pick-up in underlying inflation' , which is really hawkish from Draghi, as he never chooses words by accident.”

“On the ECB's forward guidance, he said that ' first, the 'through the summer of 2019' formulation is a calendar-based element, which refers to when we anticipate conditions that might warrant a first rate increase'which means the ECB meeting in September next year will definitely be a live meeting (our base case is that the first hike arrives in December 2019). Markets sent European yields and EUR/USD higher on the back of his comments.”