23 Jun 2014
ECB reaffirms its forward guidance – Danske Bank
FXStreet (Edinburgh) - Allan von Mehren, Chief Analyst at Danske Bank, saw Draghi and other ECB members strengthening the central bank’s forward guidance.
Key Quotes
“ECB president Mario Draghi gave further strength to the forward guidance over the weekend in an interview with the Dutch Newspaper De Telegraaf”.
“Draghi said that “we have prolonged banks’ access to unlimited liquidity up to the end of 2016. That is a signal”.
“Draghi also repeated quantitative easing is an option but indicated clearly that the ECB will first see the effects of the latest package of rate cuts and more long-term liquidity”.
“ECB member Evald Nowotny said in another newspaper interview that “once there is significant growth, of more than 2%, a rate reversal can happen, but from today’s perspective that will hardly be before 2016”.
“The comments are quite interesting as this is the first time an ECB member has put a number on growth that could lead to a rate reversal. Bear in mind, though, that Nowotny is quite outspoken and doesn’t always represent the overall ECB view”.
Key Quotes
“ECB president Mario Draghi gave further strength to the forward guidance over the weekend in an interview with the Dutch Newspaper De Telegraaf”.
“Draghi said that “we have prolonged banks’ access to unlimited liquidity up to the end of 2016. That is a signal”.
“Draghi also repeated quantitative easing is an option but indicated clearly that the ECB will first see the effects of the latest package of rate cuts and more long-term liquidity”.
“ECB member Evald Nowotny said in another newspaper interview that “once there is significant growth, of more than 2%, a rate reversal can happen, but from today’s perspective that will hardly be before 2016”.
“The comments are quite interesting as this is the first time an ECB member has put a number on growth that could lead to a rate reversal. Bear in mind, though, that Nowotny is quite outspoken and doesn’t always represent the overall ECB view”.