What To Expect From The ECB
Submitted by RanSquawk
ECB Monetary Policy Decision Due At 12:45 GMT, 13:45 CET, 07:45 EDT, On Thursday 14th December 2017, Press Conference Due At 13:30 GMT, 14:30 CET, 08:30 EDT
Submitted by RanSquawk
ECB Monetary Policy Decision Due At 12:45 GMT, 13:45 CET, 07:45 EDT, On Thursday 14th December 2017, Press Conference Due At 13:30 GMT, 14:30 CET, 08:30 EDT
There was no surprise in the ECB's monetary policy statement released moments ago, in which the central bank kept all three of its rates unchanged as expected, however it did confirm that QE is intended to to run "until the end of December 2017, or beyond, if necessary," and in a surprise addition added that "if the outlook becomes less favourable, or if financial conditions become inconsistent with further progress towards a sustained adjustment in the path of inflation, the Governing Council stands ready to increase the programme in terms of size and/or duration."
Moments ago the ECB kept all three rates on hold, however in a dovish addition, it kept its current forward guidance which some analysts had expected may be scrapped, by noting that "the Governing Council continues to expect the key ECB interest rates to remain at present or lower levels for an extended period of time, and well past the horizon of the net asset purchases." As a result, the EURUSD has sign a modest drop on the announcement while Bunds futures gained once algos noticed that contrary to some expectations, the forward guidance would remain.
With the market not expecting any changes from the ECB this morning, so far that is precisely what it got, when moments ago the ECB announced that it kept all of its rates unchanged as expected, keeping the rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility at 0.00%, 0.25% and -0.40%, respectively.
That Reuters trial balloon was right.