Danske Bank analysts explain that the latest ECB minutes from the September meeting released earlier today showed all Governing Council members (GC) wanted to act, but disagreements on how to act.
Key Quotes
“Markets still question the ECB’s ability and willingness to do whatever it takes.”
“We do acknowledge the need for action by the ECB given the low inflationary outlook, but troubles lie ahead, with subdued economic and inflationary momentum, geopolitical risks and no sizeable fiscal support in sight. Inflation is expected to stay stubbornly low at least until the end of next year.”
“We expect the ECB to stay side-lined at the 24 October meeting, but the recent fall in inflation expectations increases the probability of further action in the December meeting (or early next year) by the ECB – although it is still unclear what such measures would entail, and the minutes didn’t give any new indication.”
Share
