ECB Leaves Rates Unchanged


Draghi Press Conference Highlights:

Forecast revisions go ‘in the right direction’
Corporate bond purchases were not discussed. They’re a more remote possibility now than 6 months ago
The forward guidance on interest rates is unchanged
The news on inflation remains somewhat muted
The design of the QE program was not discussed today
The economic recovery is more advanced in the US than in Europe, especially relating to wages
‘Vast majority’ of ECB wants open-ended asset purchases
Losses from corporate-debt programs are not unusual, but have been ‘exaggerated’
Likelihood of economic downturn very, very small
The muted response to wages is way, way slower than in the past
Slow wage inflation gives us caution about making pronouncements about inflation
We never discuss a sudden stop to QE