Flash: ECB expected to take no action - BBH

FXstreet.com (Córdoba) - While not committing to any action, ECB President Draghi's comments fanned speculation of a discount rate cut and some measures to help the funding for small and medium size businesses, according to the BBH analyst team.

"Like the Fed's tapering and the OMT, a negative discount rate has arguably had desirable consequences with limited costs for policy makers", says BBH. "We do not expect the ECB to take any action, but it will keep all of its options open. That is the way the game is played, though being 'open minded' about a negative deposit rate will have less impact than before".