ECB’s Hansson says asset purchases not imminent or needed now

• ECB hasn’t technically reached its interest rate floor
• Can’t rule out further interest rate adjustments
• Unless something really unexpected happens idea of doing something more at this stage shouldn’t be part of baseline assumption
• As far as asset purchases go the tools are not sitting there but it is worth developing them

Estonian central bank head Ardo Hansson speaking to Bloomberg.

Based on these comments we’re more likely to get another rate move than QE. It’s something the ECB can use easily if things deteriorate between now and in the interim period after the TLTRO’s come online.

EUR/USD has heard it all before though and sits just off the 1.3540 highs at 1.3532