ECB: Patience, prudence and persistence will remain the guiding principles - Danske Bank

According to analysts from Danske Bank, today’s European Central Bank meeting confirmed their view that the next step in forward guidance will come in July. 

Key Quotes: 

“Our ECB view has not changed, as today’s press conference did not provide new information about the next change in the forward guidance. The introductory statement was on the margin slightly hawkish, as Draghi chose to keep the strong and broad-based growth assessment, while pointing to some moderation of late. Rising protectionism was mentioned as a downside risk.”

“The GC remains cautious about reading the developments behind the growth moderation. However, despite the acknowledgement of a loss of growth momentum, Draghi tried to downplay the implications, stressing that the ECB has unchanged confidence in the convergence of inflation towards its aim. Although inflation measures have moved sideways without a clear upward trend, Draghi mentioned encouraging signs that wage growth has picked up, which might support price pressures in coming months.”

“To sum up; overall patience, prudence and persistence will remain the guiding principles of the ECB.”