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7 Jan 2014
Flash: EUR, Sufficient reasons to stay dovish - Rabobank
FXstreet.com (Guatemala) - Strategists at Rabobank said they expect the ECB to strike a dovish tone in Thursday’s press conference but to refrain from particular action.
Key Quotes:
“In last month’s press conference it emerged that Governing Council members remain divided on how to proceed going forward even as all options remain on the table”.
“Recent economic data have confirmed the gradual but uneven economic recovery. The extent of the decline in inflation in December is too small to justify a tangible policy change at this stage”.
“Recent money market developments have been dominated by year-end effects and large LTRO repayments. We expect the ECB to require several weeks at least to assess the underlying situation in the market before it can decide whether further measures are needed to maintain low and stable money market rates in the future – in accordance with it forward guidance”.
Key Quotes:
“In last month’s press conference it emerged that Governing Council members remain divided on how to proceed going forward even as all options remain on the table”.
“Recent economic data have confirmed the gradual but uneven economic recovery. The extent of the decline in inflation in December is too small to justify a tangible policy change at this stage”.
“Recent money market developments have been dominated by year-end effects and large LTRO repayments. We expect the ECB to require several weeks at least to assess the underlying situation in the market before it can decide whether further measures are needed to maintain low and stable money market rates in the future – in accordance with it forward guidance”.