Jul 27 2018

Draghi drags the rate hike till Summer ‘19

The European Central Bank (ECB) has maintained status quo on the monetary policy measures during the ECB meeting held today. This was as expected and nothing much was taken from this. Its only when at the presser meeting did the ECB President, Mario Draghi commented on the rate hike coming ‘atleast through the summer 2019’ did the single currency get into some action.

The Trump-Juncker meeting outcome added positivity to the scenario, though Draghi said it was too early to make an assessment on this. The economic growth, inflation and rising wages outlook encouraged him to keep things unchanged as the economy was proceeding on a ‘solid broad-based’ growth path. He did highlight the trade related uncertainty as a key risk.

There was no special announcement after last month’s plan to wind down the asset purchasing program until year-end.

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