ECB President’s remarks more dovish than expected, signaling further monetary policy easing ahead
At its regular monetary policy meeting on Thursday 22 October, the ECB Governing Council (GC) decided to keep QE operational modalities unchanged, as well as the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility stable at 0.05%, 0.30% and -0.20% respectively, as expected. At a press conference that followed the conclusion of the meeting, President Mario Draghi adopted a more dovish than expected tone, highlighting the downside risks to growth and inflation outlook from the slowdown in emerging market economies and developments in financial and commodity markets. Despite the negative impact from weak foreign demand on real GDP growth, the GC expects the euro area economic recovery to continue, supported by robust domestic demand capitalizing on lower oil prices and ECB’s monetary policy easing stance….
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