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According to analysts from TDS today European Central Bank meeting was in line with expectations focusing on implementation and not in innovation.
Key Quotes:
“The ECB’s April meeting provided no surprises, in line with our expectation of a focus on implementation, not innovation.”
“Their statement shifted EM and financial volatility risks further down the list, which may suggest slightly less immediate concern. They also removed the reference to the pace of the recovery, which may suggest some internal disagreement on the expected pace of the economic recovery.”
“Specifics on corporate credit purchases showed the ECB has defined their universe of eligible bonds fairly broadly, but have provided no guidance on the pace of buying expected.
“The ECB had no fireworks left after their March meeting, providing limited need for changes to the opening statement and limited scope for surprises in the Q&A. The ECB did manage to provide guidelines for how they will carry out their Corporate Sector Purchase Programme (CSPP) to buy investment grade corporate credit, but the most interesting question on precisely how much they will begin in buy in June was left out.”
“Overall, we heard nothing today to change our views of and ECB focused on implementation for the foreseeable future, of remaining small downside risks to EURUSD in existing trends, and scope for bunds to bear steepen over the course of the year and peripheral spreads to narrow.”
21 Apr 2016
ECB provided no surprises, focus on implementation - TDS
According to analysts from TDS today European Central Bank meeting was in line with expectations focusing on implementation and not in innovation.
Key Quotes:
“The ECB’s April meeting provided no surprises, in line with our expectation of a focus on implementation, not innovation.”
“Their statement shifted EM and financial volatility risks further down the list, which may suggest slightly less immediate concern. They also removed the reference to the pace of the recovery, which may suggest some internal disagreement on the expected pace of the economic recovery.”
“Specifics on corporate credit purchases showed the ECB has defined their universe of eligible bonds fairly broadly, but have provided no guidance on the pace of buying expected.
“The ECB had no fireworks left after their March meeting, providing limited need for changes to the opening statement and limited scope for surprises in the Q&A. The ECB did manage to provide guidelines for how they will carry out their Corporate Sector Purchase Programme (CSPP) to buy investment grade corporate credit, but the most interesting question on precisely how much they will begin in buy in June was left out.”
“Overall, we heard nothing today to change our views of and ECB focused on implementation for the foreseeable future, of remaining small downside risks to EURUSD in existing trends, and scope for bunds to bear steepen over the course of the year and peripheral spreads to narrow.”