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1 Nov 2013
Flash: A dovish tone from ECB to come? - Rabobank
FXstreet.com (London) - Research teams note the ECB next week.
Key Quotes:
“We expect the ECB to refrain from tangible measures next week, simply because we think these could prove rather ineffective at this juncture”.
“The best approach in this case is to strike a decidedly dovish tone in the press conference. Indeed, Mr. Draghi may well ‘disclose’ that the Council had another discussion about the pros and cons of a refi rate cut, perhaps even a negative deposit rate”.
“Whilst a refi rate cut cannot be excluded, we would argue that the time has come for the ECB to expand its forward guidance into the liquidity sphere by promising ample liquidity “for an extended period of time.”
Key Quotes:
“We expect the ECB to refrain from tangible measures next week, simply because we think these could prove rather ineffective at this juncture”.
“The best approach in this case is to strike a decidedly dovish tone in the press conference. Indeed, Mr. Draghi may well ‘disclose’ that the Council had another discussion about the pros and cons of a refi rate cut, perhaps even a negative deposit rate”.
“Whilst a refi rate cut cannot be excluded, we would argue that the time has come for the ECB to expand its forward guidance into the liquidity sphere by promising ample liquidity “for an extended period of time.”