The European Central Bank at today’s meeting moved mostly in line with market expectations.
Analysts at Danske Bank point out the ECB delivered according to their expectations by announcing an end date to the APP, formally ending the PEPP, removing the ‘or lower’ from the forward rate guidance, and extending the time between the last bond purchase and the first-rate. They see a rate hike in December.
Key Quotes:
\u201cGoing forward, the ECB will stay data dependent, with optionality and flexibility in its monetary policy calibration, as all meetings will be \u2018live\u2019.\u201d
\u201cWe continue to expect the ECB to raise its deposit rate in December this year, although as we also expect the ECB to end its QE buying already in July, this leaves the September meeting as a possibility as well.\u201d
\u201cAs the ECB is tightening to slow the economy \u2013 rather than in response to rising trend growth \u2013 the EUR can be negatively affected, as it is currently. Looking ahead, the continued upward pressure on commodity prices, the war in Ukraine and the erosion of European firms\u2019 profits remain key issues weighing on EUR\/USD.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
The European Central Bank at today’s meeting moved mostly in line with market expectations.Analysts at Danske Bank point out the ECB delivered according to their expectations by announcing an end date to the APP, formally ending the PEPP, removing the ‘or lower’ from the forward rate guidance, and extending the time between the last bond …<\/p>\n","protected":false},"author":13,"featured_media":53410,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37,36],"tags":[9240,6923,7903,6837,8763,6987,7580,8643,7983],"class_list":["post-61782","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-forex-markets","category-market-updates","tag-data-dependent","tag-ecb","tag-economic-growth","tag-eurozone","tag-flexibility","tag-inflation","tag-monetary-policy","tag-qt","tag-rate-hike"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/61782","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=61782"}],"version-history":[{"count":2,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/61782\/revisions"}],"predecessor-version":[{"id":61786,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/61782\/revisions\/61786"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/53410"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=61782"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=61782"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=61782"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}