Headlines hitting from a Reuters story
Reuters quoting unnamed policymakers
- Support for March deposit rate cut is frim
- There is little appetite for radical action now but market turmoil and new forecasts will be key
- Measures should be in a package
The euro's dropped a tad on the headlines and given the mess the market got itself into before the Dec meeting, this is probably a little message drop so that expectations don't get out of hand again
One central bank governor speaking to Reuters said;
- Doing nothing in March in unlikely
- I think a dep rate cut is fairly undisputed
- Monetary conditions have tightened LT inflation expectations are falling and credibility is at stake
Another said the chances of a rate cut are high and that any package needs to have a QE component
Without knowing exactly who is speaking we'll have to assume that it's a couple of doves on the governing council, so the comments may not be out of character. If it's Jens Weidmann then we're all in trouble :-D
