23 Jun 2014
ECB intensifies its rhetoric - Investec
FXStreet (Edinburgh) - Jonathan Pryor, Corporate Treasury Analyst at Investec,underlines the recent appreciations from ECB officials.
Key Quotes
"Away from the sporting events, it was the turn of Europe to grab the headlines in the Financial markets over the weekend. ECB members continued their dovish rhetoric by signalling cheap funding and low rates are likely to remain in place for another two and a half years."
"ECB President Mario Draghi said in an interview with a Dutch newspaper "We have prolonged banks’ access to unlimited liquidity up to the end of 2016. That is a signal.""
"Responding to a question on how long rates will stay low he said "Our program in support of bank lending to businesses will continue for four years. That shows that interest rates will remain low over a longer period. But thereafter they will increase when the recovery will firm up.""
"ECB’s Nowotny was more specific on time horizons, again with 2016 seeming a favoured trajectory for adequate growth to return to the bloc. Nowotny said it’s the duty of the ECB to create incentives to invest when the economic situation is weak and that the low interest rate environment isn’t a permanent phenomenon. He also added "As soon as there’s clear growth, i.e. more than two per cent, then the change in rates will come... from today’s perspective however, that will scarcely be before 2016"."
Key Quotes
"Away from the sporting events, it was the turn of Europe to grab the headlines in the Financial markets over the weekend. ECB members continued their dovish rhetoric by signalling cheap funding and low rates are likely to remain in place for another two and a half years."
"ECB President Mario Draghi said in an interview with a Dutch newspaper "We have prolonged banks’ access to unlimited liquidity up to the end of 2016. That is a signal.""
"Responding to a question on how long rates will stay low he said "Our program in support of bank lending to businesses will continue for four years. That shows that interest rates will remain low over a longer period. But thereafter they will increase when the recovery will firm up.""
"ECB’s Nowotny was more specific on time horizons, again with 2016 seeming a favoured trajectory for adequate growth to return to the bloc. Nowotny said it’s the duty of the ECB to create incentives to invest when the economic situation is weak and that the low interest rate environment isn’t a permanent phenomenon. He also added "As soon as there’s clear growth, i.e. more than two per cent, then the change in rates will come... from today’s perspective however, that will scarcely be before 2016"."