Analysts at Nomura explained that they now expect US inflation and monetary policy to normalise a little more rapidly relative to our previous forecasts (and relative to market expectations).
"We still expect the ECB to cease its asset purchase programme (APP) from September and to raise short-term rates by 10bp in December.
The ECB has hitherto been given considerable leeway to maintain an exceptionally loose monetary policy stance because economic growth was weak and fragmented and because deflation risks were accordingly high.
But now the recovery, on the ECB’s own admission, is both broadly-based and in above-trend territory, policymakers are likely to face an even bigger communications challenge in the weeks ahead."
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