ECB: Crucial to preserve monetary support - BNZ

Kymberly Martin, Senior Market Strategist at BNZ, suggests that overnight the ECB released its account of its last monetary policy meeting and the Bank stated that it was “crucial” to preserve monetary support.

Key Quotes

“It did not yet see underlying inflation on a clear upward trend. In addition, it believed it was too early to judge if the risks presented by the ‘Brexit’ vote were overstated. Whilst the minutes appeared to imply support for further easing measures the ECB did see “increasing scarcity of some bonds”. This will be a consideration for its QE programme, though there was no direct mention of tapering in the minutes.”