Tag Archives: ecb QE exit

First rate hike still expected in September 2019, although downside risks are growing. The ECB kept its key rates unchanged (i.e. the main refinancing at 0.00%; the marginal lending facility rate at 0.25% and the deposit rate at -0.4%), in line with consensus. The ECB’s forward guidance on interest rates was kept unchanged. The ECB expects its policy rates to “remain at their present levels at least through the summer...

First rate hike still expected in September 2019, although downside risks are growing.The ECB kept its key rates unchanged (i.e. the main refinancing at 0.00%; the marginal lending facility rate at 0.25% and the deposit rate at -0.4%), in line with consensus. The ECB’s forward guidance on interest rates was kept unchanged. The ECB expects its policy rates to “remain at their present levels at least through the summer of 2019”.Given the tone of today’s meeting, we see no reason to contradict...

The ECB remains dovish, but a reassessment of its plans for exiting quantitative easing could come later this year and hikes in the deposit rate in 2018 if core inflation data improve.The European Central Bank left policy and forward guidance unchanged at today’s meeting notwithstanding the “increasingly solid” recovery and “diminished” downside risks to the outlook. Our impression is that there is a strong consensus to “finish the job” by keeping the monetary stance very accommodative until...