ECB acknowledges shift of risks to the downside but is still in ‘assessment mode’

Highlights:

• At today’s meeting, the ECB did not adjust its commitment to leave key rates at the present level for at least through the summer of 2019.
• In light of the latest disappointing macroeconomic news flow, the Governing Council now unanimously sees risks tilted to the downside but differs on whether the growth slowdown is persistent.
• The ECB is still in assessment mode and will discuss policy implication at the March meeting.
• We see an increased risk that the ECB will postpone the timing of its first (depo) rate hike into 2020.

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