2 Dec 2013
Flash: two messages from ECB coming up - RBS
FXstreet.com (London) - Strategists at RBS said Draghi will deliver two messages: (1) We see no reason to panic, but (2) we are ready, willing and able to act if we need to.
Key quotes:
“Message one is that there is no need to panic: the risks of the Eurozone sliding into deflation or the stock of excess liquidity soon draining away remain remote”.
“Message two is that if things get worse, the Council is ready, willing and able to act: various unconventional tools are on the table and the Council is prepared to use them”.
“Both messages are potentially supportive – the first could shift beliefs in a positive direction, calming fears; the second could comfort investors that policymakers will stabilise the system”.
“The Press Conference will also see the publication of the latest set of staff projections. We expect calendar year averages for inflation in 2014 and 2015 of 1.1% and 1.3% respectively and 1.0% and 1.4% for growth”.
“The press conference illustrates why we believe that the Council would be better served by a more expansive communication strategy – a set of projections and a cost benefit analysis of different tools at the lower bound reflecting the views of the Council would be a welcome early Christmas present”.
Key quotes:
“Message one is that there is no need to panic: the risks of the Eurozone sliding into deflation or the stock of excess liquidity soon draining away remain remote”.
“Message two is that if things get worse, the Council is ready, willing and able to act: various unconventional tools are on the table and the Council is prepared to use them”.
“Both messages are potentially supportive – the first could shift beliefs in a positive direction, calming fears; the second could comfort investors that policymakers will stabilise the system”.
“The Press Conference will also see the publication of the latest set of staff projections. We expect calendar year averages for inflation in 2014 and 2015 of 1.1% and 1.3% respectively and 1.0% and 1.4% for growth”.
“The press conference illustrates why we believe that the Council would be better served by a more expansive communication strategy – a set of projections and a cost benefit analysis of different tools at the lower bound reflecting the views of the Council would be a welcome early Christmas present”.