ABN Amro have an unequivocal take on European Central Bank President Draghi comments overnight

When I say 'unequivocal', I mean it. These are the first few lines in their latest research piece:

  • ECB still on track for December
  • Draghi makes it clear that more stimulus is still on the cards
  • ECB President Mario Draghi struck a dovish tone in his testimony to the Economic and Monetary Affairs Committee of the European Parliament
  • He poured cold water on any doubts that the ECB would turn back from stepping up monetary stimulus
  • The message was loud and clear: new measures were still on the cards for December

If you're looking for certainty, ABN Amro have provided it in spades.

More:

  • Exact package being worked out
  • His explicit remarks on a deposit rate cut and QE extension suggest these steps are very likely
  • However, he did not signal increasing the size of the QE programme or its composition
  • We think this is probably still a live issue that has to be discussed and agreed in the Governing Council, but we think ultimately the ECB will decide to increase the scale of the programme and add new assets

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Earlier coverage:

  • ECB's Draghi says they will re-examine monetary policy accommodation at December meeting
  • Deadly Draghi does it again - Euro dives but something doesn't add up