- ECB won’t rush on decision before assessing what works, must discuss all options
- ECB unanimous on doing more if extra stimulus is needed
- ECB needs to look at impact of existing programs
- Low inflation is as bad as deflation regarding debt impact
- Anything ECB does remains dependent on economic data
I’m sure discussions on QE will be hot next week, and the euro is lower on the headline comment, though the rest of it isn’t as strong.
It’s another “we will act” message but with strings attached.
EUR/USD down to 1.2425 from 1.2439
The ECB staff have been working on new measures and they’re not that slow, so it’s becoming odds on that we get some form of announcement next week. If we get through the initial statement without giving QE (or anything else a mention) and the euro rallies then I reckon Draghi will drop the bomb in the Q&A for maximum effect, like he did earlier in the year with rate cuts when we were touching 1.40.
