ECB to remain on hold in view of encouraging economic data
ECB to remain on hold in view of encouraging economic data
ECB to remain on hold in view of encouraging economic data
Global & Regional Focus Notes
05 Μαρτίου 2014
• We expect the ECB to remain on hold due to encouraging incoming economic data but it is a close call. • Weakness in price developments reflects, to a large extent, external factors, while components pertaining to domestic demand are inching higher. Market data show that inflation expectations remain anchored. • Developments in money markets do not call for immediate action. • Potential negative side effects of policy rate cuts put an obstacle in building consensus in the Governing Council for additional conventional easing.