FXStreet (Guatemala) - Analysts at Rabobank drew attentions towards today’s ECB and press conference and in particular the inflation expectations.



Key Quotes:



“Draghi stroke a mild tone with regard to the latest inflation print (0.4% in July), arguing that the recent decline was mainly due to falling energy costs and had not really come as a surprise”.



“He also noted that core inflation had remained stuck at 0.8%, suggesting that the recent inflation numbers have not raised significant concerns among the Governing Council yet”.



“Draghi argued that long-term inflation expectations were still well-anchored, at levels close to 2 percent”.



“He admitted, though, that short-term expectations had come down in response to falling current inflation rates and that medium-term expectations (5-year ahead) are, roughly, in the middle (“close to 1%”). The SPF survey (to be released next week) will show "confirmation" of the ECB’s medium to long-term outlook with regard to inflation, he conceded (i.e., no significant shift in inflation expectation on the medium to longer term according to professional forecasters)”.



You May Also Like