19 Nov 2013
Flash: ECB rhetoric continues to be dovish - BTMU
FXstreet.com (Barcelona) - Lee Harman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ notes that the rhetoric from ECB policymakers has continued to remain dovish following their recent decision to lower the refi rate to 0.25%.
Key Quotes
“ECB Governing Council member Nowotny stated yesterday that “the economic situation in Europe and in the euro area in particular has started to improve over the last months or even last year…but one has to say that this improvement is not as strong as we would have expected it perhaps some time ago, and at the same time inflation rates are clearly below the price stability level that we set at the ECB”.
“He also noted that “if there should be a need for further stimulus measures, yes, we do have a number of measures in the arsenal”.”
“It is clearly evident now that the recent refi rate cut alone has not proved enough to weaken the euro materially especially with the euro-zone’s widening current account surplus, which is on course to total around 2.3% of GDP in 2013, supportive of a stronger euro.”
Key Quotes
“ECB Governing Council member Nowotny stated yesterday that “the economic situation in Europe and in the euro area in particular has started to improve over the last months or even last year…but one has to say that this improvement is not as strong as we would have expected it perhaps some time ago, and at the same time inflation rates are clearly below the price stability level that we set at the ECB”.
“He also noted that “if there should be a need for further stimulus measures, yes, we do have a number of measures in the arsenal”.”
“It is clearly evident now that the recent refi rate cut alone has not proved enough to weaken the euro materially especially with the euro-zone’s widening current account surplus, which is on course to total around 2.3% of GDP in 2013, supportive of a stronger euro.”