Searcher

Published on Thursday, July 22, 2021

ECB WATCH | Dovish and hawkish tones in the same package

ECB’s first policy meeting after its monetary policy strategy review was marked by a lack of unanimity, likely reflecting an intense discussion between the doves and the hawks.

Key points

  • Key points:
  • Changes in forward guidance on rates towards a more dovish exit, given stronger conditions to ensure that inflation meets the new target
  • However, there was no decision on QE and a potential transition to avoid the cliff of PEPP withdrawal in March 2022, as it was expected
  • Risks are balance on an outlook which is more positive but with the uncertainty of the Delta variant of Covid

Geographies

Topics

Has this information been useful?

New comment

Be the first one to add a comment

Load more

You may also be interested in