- As expected, the ECB announced to terminate QE at the end of December but committed itself to reinvest maturing securities for an extended period past the day it starts raising rates.
- Also, the ECB maintained the commitment to leave key rates at the present level for at least through the summer of 2019.
- While the growth outlook was revised down, the underlying strength of activity is still seen intact and risks remain still balanced in the eyes of the ECB.
- Overall, the ECB maintained an easing bias and Draghi adopted a dovish tone in the Q&A session. We expect a first (depo) rate hike in December 2019.