More on a dovish ECB

Via Westpac:

ECB President Draghi and the Governing Council were both subtle and direct in March, both with respect to their own economy and evolving global conditions.

Beginning first with the Euro Area, having repeatedly revised up their growth expectations, the Governing Council took their first official step towards tightening policy by dropping the reference to a potential increase in the asset purchase program if “the outlook becomes less favourable, or if financial conditions become inconsistent with further progress towards a sustained adjustment in the path of inflation”. During Q&A, this was referred to as a backward looking change which recognised that downside risks have receded materially since the decision was made to reduce asset purchases from EUR80bn per month to EUR60bn back in December 2016 (now EUR30bn).

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.