Draghi: Hawkish comments despite dovish undertones

It was all about Mario Draghi overnight where his comments were interpreted as hawkish despite there being dovish undertones, suggests the analysis team at ANZ.

Key quotes

“While there was an acknowledgment the euro area recovery is strengthening and broadening, there was still concern around the durability of inflationary pressures. This is expected to keep monetary policy very stimulatory for some time. But the first acknowledgement that “as the economy continues to recover, a constant policy stance will become more accommodative, and the central bank can accompany the recovery by adjusting the parameters of its policy instruments – not in order to tighten the policy stance, but to keep it broadly unchanged” was enough for yields to snap higher.”

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