In the eyes of the analysts at Westpac, the first ECB meeting in 2019 was slightly interlinked with key policy rates that "at least through summer 2019 and in any case for as long as necessary will remain to its existing levels.
“The major change at the meeting was the acknowledgement that risks to the outlook have “moved to the downside” which compares to the previous meeting’s description of “broadly balanced” but “moving to the downside”. These risks continue to be linked to increasing general uncertainty related to “geopolitical factors and the threat of protectionism, vulnerabilities in emerging markets and financial market volatility”.”
“Given said downside risks, some were surprised that the ECB did not choose to already extend their forward guidance for unchanged rates beyond summer.”
“In the press conference, ECB President Draghi made clear that they did not discuss policy at this meeting but instead made an assessment of their view ahead of the March meeting and projection updates.”
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