4 Nov 2013
Flash: ECB to cut refi rate on soft inflation?
FXstreet.com (London) - For the ECB, we worry that market sentiment is overreaching in looking for an imminent refi rate cut after last week’s very soft inflation figures.
Key Quotes:
“…with the Flash headline falling from 1.1% to 0.7% y/y and core falling from 1.0% to 0.8%”.
“We do not expect a change in rates or LTROs at this week’s meeting”.
“Though we do think Draghi will look to leave his options open for the December meeting when they update their forecasts and reveal their expectations for 2015, the fact is that there are no good options for the ECB this week”.
Key Quotes:
“…with the Flash headline falling from 1.1% to 0.7% y/y and core falling from 1.0% to 0.8%”.
“We do not expect a change in rates or LTROs at this week’s meeting”.
“Though we do think Draghi will look to leave his options open for the December meeting when they update their forecasts and reveal their expectations for 2015, the fact is that there are no good options for the ECB this week”.