The ECB held its press conference yesterday. As anticipated, no significant change was announced:
Risks remain on the downside but the probability of a recession remains low.
- Inflation expectations are sliding with economic activity but are not becoming de-anchored.
- The ECB will consider if negative rates require mitigating. This is maybe the only “surprise” during this press conference during which Draghi mentioned the possibility of tiered rates.
Overall, the ECB confirmed its dovish stance.
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