Overview: There were two interesting takeaways from a speech by ECB's überhawk Axel Weber in Malaysia last night. First, ECBs caution of lowering rates too much has taken a back seat in our view - as already suggested by Trichet on the ECB meeting last week. This makes a 50bp cut on the March meeting more likely and the chance of further easing during Spring is definitely there. We will release new rate forecasts on Friday and will likely revising down the path for ECB rates from our current scenario of 50bp in March being the last cut. Second, Weber highlights the importance of a symmetrical policy approach where rates are changed at the same pace in both directions. This suggests that rates will be raised faster than "normal" once the cycle turns.
Flash Comment
Euroland: Weber confirms shift in ECB focus
Tue, Feb 10 2009, 17:35 GMT
by
Allan von Mehren
- Danske Bank A/S
|
View company's profile
About this Report
Danske Bank A/S
danskeresearch@danskebank.com
Archive
-
"No disbursement without implementation"
Fri, Feb 10 2012, 09:24 GMT
-
China: Signs of slower import growth in distorted trade data
Fri, Feb 10 2012, 08:59 GMT
-
ECB meeting: Looking intensively at credit tightening risk
Fri, Feb 10 2012, 05:48 GMT
-
BoE does another £50bn QE - buying strategy changed
Thu, Feb 9 2012, 15:15 GMT
-
Greece is close to a deal
Thu, Feb 9 2012, 13:23 GMT
Legal disclaimer and risk disclosure
This publication has been prepared by Danske Bank for information purposes only. It is not an offer or solicitation of any offer to purchase or sell any financial instrument. Whilst reasonable care has been taken to ensure that its contents are not untrue or misleading, no representation is made as to its accuracy or completeness and no liability is accepted for any loss arising from reliance on it. Danske Bank, its affiliates or staff, may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives), of any issuer mentioned herein. Danske Bank's research analysts are not permitted to invest in securities under coverage in their research sector.
This publication is not intended for private customers in the UK or any person in the US. Danske Bank A/S is regulated by the FSA for the conduct of designated investment business in the UK and is a member of the London Stock Exchange.
Copyright () Danske Bank A/S. All rights reserved. This publication is protected by copyright and may not be reproduced in whole or in part without permission.






