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4 Sep 2015
ECB remains ready to act – Deutsche Bank
FXStreet (Edinburgh) - Jim Reid, Analyst at Deutsche Bank, reviewed yesterday’s dovish statement by the ECB.
Key Quotes
“Back to the ECB, the staff growth and inflation forecasts were revised down, a little more than our economists expected with the Council seeing downside risks”.
“Draghi repeatedly mentioned EM which was a signal that they're concerned and as DB's Mark Wall suggested, the rhetoric on the willingness to respond was dialled up to “willingness, readiness and capacity to act”.
“Supporting this was the decision to raise the issue limit on individual securities purchases to 33% from 25%”.
“So they have given themselves room to act although there was no discussion on the immediate use of this facility so its use would require fresh info”.
“Nevertheless this should create a mini ECB put on financial assets if turmoil returns”.
Key Quotes
“Back to the ECB, the staff growth and inflation forecasts were revised down, a little more than our economists expected with the Council seeing downside risks”.
“Draghi repeatedly mentioned EM which was a signal that they're concerned and as DB's Mark Wall suggested, the rhetoric on the willingness to respond was dialled up to “willingness, readiness and capacity to act”.
“Supporting this was the decision to raise the issue limit on individual securities purchases to 33% from 25%”.
“So they have given themselves room to act although there was no discussion on the immediate use of this facility so its use would require fresh info”.
“Nevertheless this should create a mini ECB put on financial assets if turmoil returns”.