ECB: Change of forward guidance to confirm stimulus is on the way - ABN AMRO
|Nick Kounis, head of Financial Markets Research at ABN AMRO, noted that there is a possibility that the (ECB) Council will signal the increasing likelihood of a re-start of QE by adding a line to its forward guidance on its asset purchase programme.
Key quotes
"It will very likely change its forward guidance on interest rates from the current expectation that ‘the key ECB interest rates (will) remain at their present levels at least through…’ to ‘the key ECB interest rates (will) remain at their present levels or lower at least through…’."
"This would signal that a cut in policy rates is likely at the next Governing Council meeting in September."
"For instance, it could say that the ECB would ‘re-start net asset purchases if necessary to ensure sustained convergence of inflation to levels that are below, but close to, 2% over the medium term’."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.