Comments at the ECB press conference on January 23, 2020:
- Repeats the ECB statement
- Manufacturing remains a drag
- Employment growth continues to support economy
- There are some signs of an increase in inflation that's in line with expectations
- In light of continued subdued inflation outlook, monetary policy has to remain stimulative for a prolonged period of time
- We will closely monitor inflation developments
- ECB ready to adjust all instruments as appropriate
- ECB committed to symmetry on inflation
- Eurozone inflation increase 0.3% q/q in Q3 vs +0.2% in Q2
- Weak growth reflects weakness in global trade
- Surveys and data points show some stabilization
- Near-term growth expected to similar to rates observed in previous quarters
- Risks tilted to the downside but less pronounced
- Weaker growth momentum is delaying the passthrough of inflation
- Crosscheck confirms ample degree of monetary accommodation still needed
The line that got attention was "there are some signs of an increase in inflation" but it's critical to include the second half of what she said "...that's in line with expectations". The algos jumped on the headline but it's not as hawkish as it sounds.
Update: Here is the full text
