ECB will fully implement its QE programme - ANZ

Analysts at ANZ points out that senior ECB officials continued to counter growing market expectations that there may be a meaningful shift in ECB forward guidance with both Draghi and Constancio reinforcing the view that the ECB will fully implement its QE programme (EUR60bn per month until year end).

Key Quotes

“Draghi also noted that underlying inflation remains subdued despite the increasingly solid recovery in activity. His comment that QE may have more side-effects than negative interest rates would seem to imply that he is not an advocate of changing the outlined sequencing (i.e. rates will rise sometime after QE ends subject to inflation recovering).”