It’s been another choppy session for European markets, dropping to their lows of the day in the aftermath of the ECB’s decision to hike rates by 75bps, and hawkish comments from Fed chair Jay Powell.
ECB
ECB Meeting Accounts: It was cautioned that “higher for longer”
ECB Meeting: According to the accounts of the December ECB (European Central Bank) monetary policy meeting, it was cautioned that a “higher for longer” inflation scenario could not be ruled out.
ECB Expected – Interest Rate Unchanged at 0% as Expected
“ECB expects interest rates to remain at their present or lower levels at least through the first half of 2020, and in any case for as long as necessary to ensure continued sustained convergence of inflation to its aim over the medium term.”
Draghi: The Governing Council stands ready to adjust all of its instruments
Draghi: The Governing Council stands ready to adjust all of its instruments to ensure that inflation continues to move towards the inflation aim
Draghi’s Long Farewell May Delay ECB Guidance move
Gold Silver Reports (GSR) – Some European Central Bank policymakers are reluctant to alter their guidance on interest rates as a move could tie the hands of the bank’s next president many months before an appointment is even made, four sources close to the matter said.