ECB and BOE: brief report

hello,

European Central Bank, as expected, did not change the parameters of the monetary policy during the meeting on Thursday. Mario Draghi said that to make a decision the bank will need new inflation projections, which will be announced in June. Therefore, verify scenario, according to which the ECB was waiting and act only after a review of the current economic situation.

In addition, the president clearly signaled that the reduction in interest rates will be possible in June, which naturally favors the fall in value of the euro.

Conference highlights:

- DRAGHI SAYS: MODERATE RECOVERY PROCEEDING AS EXPECTED;
- DRAGHI SPEAKS: IN BRUSSELS AT MONTHLY PRESS CONFERENCE;
- DRAGHI SEES PROLONGED PERIOD OF LOW INFLATION;
- DRAGHI SAYS: INFLATION TO RISE GRADUALLY THEREAFTER;
- DRAGHI SAYS: UNDERLYING PRICE PRESSURES SUBDUED;
- DRAGHI SAYS: SUDUED INFLATION OUTLOOK EXTENDING INTO MEDIUM TERM;
- DRAGHI: CITES LOW INFLATION, HIGH DEGREE OF UNUTILIZED CAPACITY;
- DRAGHI SAYS: UNUTILIZED CAPACITY IS SIZEABLE.

But the punchlines:
- DRAGHI: ECB READY TO ACT SWIFTLY WITH FURTHER EASING IF NEEDED.

By act, he of course means talk.
- DRAGHI: SAYS ECB READY TO CONSIDER UNCONVENTIONAL INSTRUMENTS.

Opinions Banks after today's speech of Mario Draghi:

Nomura: We expect all cut interest rates at its June meeting. The ECB is not satisfied with such a low inflation for a long time, and the exchange rate impact on price stability.

Commerzbank: Draghi gave the signal to cut interest rates in June, but it all boils down to inflation forecasts. If they are even with 0.1 points. percent. lower the cost of money will decrease.

Credit Agricole: cutting interest rates can only be part of wider work including further forward guidance and liquidity operations.

ING: Waiting for cutting interest rates is now greater than ever. This puts the ECB's wall. If you are cutting will not, it will be a huge surprise.

Nordea: expect to cut its main interest rate to 0.15 percent. and deposit to -0.10 percent.

Bank of England: the main interest rate: 0.50% 

Asset purchase program 375 billion pounds.

In line with expectations.

Footnote; Please feel free to explore the blog archives and as always you comments are encouraged.

best regards,

oscarjp