ECB: Rates seen unchanged, focus shifts to QE – UOB

UOB Group’s Economist Lee Sue Ann comments on the upcoming ECB meeting.

Key Quotes

“The revised forward guidance from the July meeting shows the ECB can tolerate above-target inflation that is transitory.”

“As such, the ECB will accept any temporary overshoots of its new symmetric 2% inflation target, particularly when monetary policy is at the effective lower bound and strong policy action is needed to ward off below-target inflation expectations – as is currently the case.”