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Today’s monetary policy account signals the ECB stands ready to do more but amidst all the uncertainty, it is difficult to see ahead. More easing measures will likely be introduced in June, analysts at Nordea brief. The EUR/USD pair largely ignored this statement.

Key quotes

“While it was clear that the short-term inflation outlook had deteriorated, the medium to longer-term outlook was more ambiguous and some Governing Council members even pointed to upside risks.”

“The flexibility of the pandemic emergency purchase programme (PEPP) was emphasized but not everybody was enthusiastic about the flexibility. Such voices most likely remain in minority for now.”

“We continue to expect that the PEPP will be expanded and extended. Further modifications to the TLTRO terms could also be in store. We do not expect the ECB to lower its benchmark rates anymore. It is clearly focusing on other means to ease policy.”