October 25, 2018

ECB still on course to normalize policy despite more muted growth outlook

Share on facebook
Share on twitter
Share on linkedin
Share on email

In Short

As expected, key rates remained unchanged; the ECB committed itself to leave them at the present level for at least through the summer of 2019 while confirming that QE will end in December 2018.
ECB still on course to normalize policy despite more muted growth outlook
Share on facebook
Share on twitter
Share on linkedin
Share on email

Highlights:

  • As expected, key rates remained unchanged; the ECB committed itself to leave them at the present level for at least through the summer of 2019 while confirming that QE will end in December 2018.
  • While acknowledging that the growth momentum weakened, the growth risks remain still balanced in the eyes of the ECB.
  • The ECB’s base case is an orderly Brexit and a solution of the conflict between Italy and the EC.
  • The post-QE reinvestment policy was again not discussed.
  • We continue to expect a first (depo) rate hike in September 2019.

Download the full publication below

ECB STILL ON COURSE TO
NORMALIZE POLICY
DESPITE MORE
MUTED GROWTH OUTLOOK

Also interesting

EU flag green
July 26, 2021
Focal Point

ECB greening of the credit market to start in 2022

triple peak
July 23, 2021
Market Perspectives

Market Perspectives ǀ Overfretting about the triple peak

European-Central-Bank-in-Frankfurt_web
July 22, 2021
Market Commentary

ECB sends a dovish message as new strategy increases threshold for raising rates