The Governing Council of the European Central Bank takes its monetary policy decision every six weeks.
Immediately after the meeting, the President and the Vice President of the ECB explain the decision at the press conference and answer questions from journalists.
Today’s Live ECB Press conference can be watched live at 1:30 pm GMT (London time).
Summary of the ECB meeting results
– We conducted a thorough assessment of inflation and monetary policy
– Seven month extension in QE
– No actual change to the size of the monthly purchases
NO CHANGE TO THE QE = ENOUGH EURO SHORTS
– Persistent low inflation rate reflects sizeable economic slack
– Risks to economic outlook are on the downside
– Our decisions reinforce momentum of the euro area’s economic recovery and strengthen its resilience against global economic shocks
Major disappointment, or really?
It was actually expected from the market as the ECB would not have changed their books ahead of the holiday season
– ECB is willing to use all instruments
– Low oil should provide support for households
(inflation is being ignored, looking to holiday spending?)
– Government expenditure likely to increase
– Eurozone growth dampened by subdued growth in emerging markets
Let’s see what the Q&A will bring on the table?!
So far EURUSD is going crazy (making a high of 1.0892) after the disappointment from the ECB President Mario Draghi that the ECB will not make changes to the size of the QE program.
– ECB will review technical aspects of QE “in the Spring”
– Recovery is becoming broader
– Recovery driven mainly by consumption (Oil comment above)
– Gradually our QE is translating itself into improving economic conditions