Posted inAnalysisEurope

No basis for hawkish turn as ECB holds firm

The inflation expectation for 2017 was up from 1.3% to 1.7%, and expected to be 1.6% in 2018 after rising to 2% in February, Draghi said, while growth is expected to be 1.8% this year and 1.7% the year after.

After Draghi side-stepped questions about the possobility of a rate hike before the end of quantitative easing, Aberdeen Asset Management investment manager Patrick O’Donnell, said markets could begin to move “on the assumption the ECB will remove accommodation towards the end of the year”.

He said: “It’s a classic Draghi technique of saying something that will move markets without actually doing anything.

“Due to this, and a wordy response to a question about raising rates before QE ends, markets will now start to recalibrate on the assumption that the ECB will remove accommodation towards the end of the year.”

Louise Hill

Louise joined Portfolio Adviser in December 2016 as one of the editorial team’s news reporters based in London. Originally from Liverpool, she is an NCTJ-qualified journalist and began her career in...

Part of the Bonhill Group.