6 Feb 2014
Flash: ECB don’t want to get it wrong- Rabobank
FXStreet (Guatemala) - Rabobank analysts made their interpretations on the ECB.
Key Quotes:
“The ECB is genuinely of the opinion that recent data and developments (lower inflation, disappointing retail sales in Germany, EM turbulence) are transitory and acting now would expose it to the risk of being ‘wrong with hindsight’ next month”.
“The activist slant of the Governing Council under Draghi up until recently lends support to this view. After all, that would fit the adage of “when in doubt, ease”, even more so under the beefed-up forward guidance”.
“The implication of this is that the ECB apparently have a higher hurdle to spring into action than was generally considered by the market. The response of the euro (up almost one big figure during the press conference) and rates (5y EUR swap up 4bps) underlines this point”.
Key Quotes:
“The ECB is genuinely of the opinion that recent data and developments (lower inflation, disappointing retail sales in Germany, EM turbulence) are transitory and acting now would expose it to the risk of being ‘wrong with hindsight’ next month”.
“The activist slant of the Governing Council under Draghi up until recently lends support to this view. After all, that would fit the adage of “when in doubt, ease”, even more so under the beefed-up forward guidance”.
“The implication of this is that the ECB apparently have a higher hurdle to spring into action than was generally considered by the market. The response of the euro (up almost one big figure during the press conference) and rates (5y EUR swap up 4bps) underlines this point”.