- Being prudent does not rule out possibility of moving from withdrawing accommodation to restricting demand
- It would be misguided to base aggressive tightening on assumptions which cannot be be conclusively substantiated
It's all fancy words but the bottom line is that the ECB is still going to want to pursue tighter policy for now, for as long as they can get away with it. As we move into next year with a prolonged recession on the cards, we will see if they still really have said appetite to keep restricting demand.
