ECB decision not to cut was about optics

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Bloomberg says it has spoken to three ECB officials:

Rates were kept on hold because of concerns about the negative signal a cut might send in conjunction with the significant downward revisions to the ECB’s growth and inflation forecasts, the officials said on condition of anonymity.

To me, that detail makes a cut in January more likely.

Author: Adam Button

Adam Button is the managing editor of ForexLive™. He was previously the chief currency strategist at XForex and has also worked with Intermarket Strategy. Adam believes there's an edge in knowing every tidbit of news. He was formerly the head of the markets team at the Canadian Economic Press and is a graduate of Ryerson University. Adam lives in Montreal, follow him on Twitter: @FX_Button.

One Comment

  1. Keeping up appearances doesn’t quite work when you tell the media that you’re keeping up appearances.

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