Europe | Being predictable during uncertain times

Overall, the relatively modest downward revision in growth projections and the delinking of the tapering from the rate rise scenarios allows the ECB to convey a hawkish message while freeing itself to make the decision on rates more data dependent

Key points

• Key points:
• The ECB plans to end asset purchases in 3Q22 going ahead on its monetary policy normalization
• At the same time it delinks the end of APP from the rate hike decision, keeping the maximum optionality and flexibility under a very uncertain environment
• Limited economic forecast revision on growth, while medium term inflation forecasts remain in line with target

Authors

Geographies

Topics

Tags