7 Feb 2014
Flash: ECB rates unchanged, more time required - RBS
FXStreet (Guatemala) - Strategists at RBS noted the developments in the European session with regards to the ECB which took the attention of markets and dominated trading earlier.
Key Quotes:
“The Governing Council left the key ECB interest rates unchanged this month. The 'no change' outcome was expected by the market, but we had forecast a cut in the main refinancing rate”.
“It appears that the Council decided not to decide – that is, the Council decided to delay taking a final decision on whether the current policy stance was appropriate until next month”.
“The Council and President Draghi defended the 'no decision' decision on the basis that the Council needed more time to acquire precious information before reaching a definitive conclusion given a complex policy debate”.
Key Quotes:
“The Governing Council left the key ECB interest rates unchanged this month. The 'no change' outcome was expected by the market, but we had forecast a cut in the main refinancing rate”.
“It appears that the Council decided not to decide – that is, the Council decided to delay taking a final decision on whether the current policy stance was appropriate until next month”.
“The Council and President Draghi defended the 'no decision' decision on the basis that the Council needed more time to acquire precious information before reaching a definitive conclusion given a complex policy debate”.