Draghi sticking to the script – ANZ

The research team at ANZ explains that the ECB President Draghi addressed the Dutch Parliament overnight, and whilst he gave a positive assessment of the current and expected business climate (the euro area is “clearly improving”), he reiterated that the ECB will be implementing its planned QE programme in full this year and that it’s too early to declare success on inflation.

Key Quotes

“As risks to the economy become more balanced and downside price risks subside, it is likely that the ECB will at some stage in the not too distant future (maybe the June 8 meeting?) upgrade its forward guidance to reflect the improved economic backdrop. That would imply no need for language and guidance around lower interest rates so that cornerstone of the ECB statements may change. However, the euro came under some modest selling pressure as Draghi poured cold water on expectations of an early exit of the QE programme so it’s business as usual for now.”