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22 Oct 2015
ECB: no turning back - Rabobank
FXStreet (Guatemala) - Analysts at Rabobank noted the ECB and commented.
Key Quotes:
"f you burn your bridges, there is no going back. And that is what the ECB president has done today. And so we comply and change our view accordingly. We now expect a 15bp cut in the deposit rate in December.
This doesn’t take away the fact that the Governing Council may still have a preference to increase QE, for Draghi once again recalled that “the asset purchase programme provides sufficient flexibility in terms of adjusting its size, composition and duration.”
We therefore now see a combination of an increase in asset purchases and a deposit rate cut the most likely outcome of the December meeting."
Key Quotes:
"f you burn your bridges, there is no going back. And that is what the ECB president has done today. And so we comply and change our view accordingly. We now expect a 15bp cut in the deposit rate in December.
This doesn’t take away the fact that the Governing Council may still have a preference to increase QE, for Draghi once again recalled that “the asset purchase programme provides sufficient flexibility in terms of adjusting its size, composition and duration.”
We therefore now see a combination of an increase in asset purchases and a deposit rate cut the most likely outcome of the December meeting."