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6 Mar 2014
Flash: ECB unchanged – RBS
FXStreet (Guatemala) - RBS strategists noted the environment in the EZ which lead The Governing Council to keep rates on hold.
Key Quotes:
“The Governing Council left the key ECB interest rates unchanged today”.
“The Council did not take the decision to terminate the weekly drain of the liquidity created by the SMP purchases either, which may have come as a surprise to some”.
“We had originally pencilled in a cut for this meeting but in light of the news on inflation over the month we pulled the call”.
“As President Draghi noted today, the news on the month has by and large been on the positive side, and that made a rate cut this month unlikely given no change last month”.
“The staff projections which were released today painted a picture of an economic recovery gathering momentum but a protracted period of weak inflation”.
“For the calendar years 2014, 2015 and 2016 annual GDP growth is expected to be 1.2%, 1.5% and 1.8%; for inflation the projections deliver 1.0%, 1.3% and 1.5% in those three years respectively”.
Key Quotes:
“The Governing Council left the key ECB interest rates unchanged today”.
“The Council did not take the decision to terminate the weekly drain of the liquidity created by the SMP purchases either, which may have come as a surprise to some”.
“We had originally pencilled in a cut for this meeting but in light of the news on inflation over the month we pulled the call”.
“As President Draghi noted today, the news on the month has by and large been on the positive side, and that made a rate cut this month unlikely given no change last month”.
“The staff projections which were released today painted a picture of an economic recovery gathering momentum but a protracted period of weak inflation”.
“For the calendar years 2014, 2015 and 2016 annual GDP growth is expected to be 1.2%, 1.5% and 1.8%; for inflation the projections deliver 1.0%, 1.3% and 1.5% in those three years respectively”.