Download full report with analyst certification and important disclosures
Mar 9 2018, 08:30 GMT
A subtle, yet important, shift in the ECB’s policy statement heralds the beginning of the road back to normality. The removal of the commitment to loosen policy if necessary in yesterday’s statement was expected, and while markets reacted accordingly to the hawkish signal, ECB President Mario Draghi was at pains to highlight the expected slow return to normality. Gains in the euro were reversed following the press conference, but European stocks were still up strongly on the day. In the near term, asset purchases look set to be tapered, if not ended, from September, while the outgoing President might even manage a rate hike before his term ends in late-2019.