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3 Apr 2014
ECB would stay put today - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, believes the ECB would leave its policy unchanged today.
Key Quotes
"The euro is beginning to weaken modestly ahead of today’s ECB policy meeting as investors are a little more wary that the ECB may respond to low inflation by easing policy further. Still, investors remain largely sceptical that the ECB will take more effective action in the near-term with a refi rate cut and or liquidity boosting measures unlikely to prove effective at easing inflation concerns or lowering the euro."
"The introduction of more aggressive monetary easing such as lowering the deposit rate into negative territory and/or a form of QE would likely be more effective and would take the market by surprise helping to lift inflation expectations and lowering the euro. Similarly we remain doubtful of effective policy action today but hope to be surprised."
Key Quotes
"The euro is beginning to weaken modestly ahead of today’s ECB policy meeting as investors are a little more wary that the ECB may respond to low inflation by easing policy further. Still, investors remain largely sceptical that the ECB will take more effective action in the near-term with a refi rate cut and or liquidity boosting measures unlikely to prove effective at easing inflation concerns or lowering the euro."
"The introduction of more aggressive monetary easing such as lowering the deposit rate into negative territory and/or a form of QE would likely be more effective and would take the market by surprise helping to lift inflation expectations and lowering the euro. Similarly we remain doubtful of effective policy action today but hope to be surprised."