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3 Apr 2014
ECB; A no change outcome – RBS
FXStreet (Guatemala) - Analysts at RBS noted that the ECB left rate son hold, but noted the council had discussed lowering them.
Key Quotes:
“President Draghi revealed that the Council discussed both lowering the deposit rate and narrowing the corridor in this meeting”.
“It may well be that the Council did not believe that even the marginal stimulus provided by narrowing the corridor was warranted in response to inflation falling to 0.5%”.
“However, we suspect that the views of certain Council members regarding the costs of narrowing the corridor also played a major role in delivering a 'no change' outcome”.
Key Quotes:
“President Draghi revealed that the Council discussed both lowering the deposit rate and narrowing the corridor in this meeting”.
“It may well be that the Council did not believe that even the marginal stimulus provided by narrowing the corridor was warranted in response to inflation falling to 0.5%”.
“However, we suspect that the views of certain Council members regarding the costs of narrowing the corridor also played a major role in delivering a 'no change' outcome”.