ECB more or less as expected
Anders Svendsen, chief analyst in Nordea Markets comments the ECB meeting today.
The ECB keeps key interest rates on hold. ECB President Draghi announced some details of the ECB’s new intervention mechanism called “Outright Monetary Transactions” (OMT) and easier collateral requirements.
Mild positive market reaction.
All in All, Draghi delivered more or less what was expected in terms of details of the intervention programme considering the leaks over the past few days. Now it is up to the governments to activate the ECBs program. One surprise – to me at least – was that Draghi did not hint any upcoming rate cut. In fact, he said that the last rate cut took into consideration today’s downward revision of staff GDP growth projections, which does not exactly hint any plans for future action.
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