The ECB’s Nowotny spoke with Bloomberg:
- No need for further ECB action in near future
- ECB is trying to develop ABS purchase plan
- Should agree on or drop ABS plan by year end
- Will stick with forward guidance amid low inflation
- Monetary policy has its limits
- ECB sees positive results from latest stimulus
- Latest ECB measures stopped euro appreciation
The lack of near-term action has been bounced around in official and unofficial comments since the ECB went to negative deposit rates so it’s not a surprise. The year-end timeline makes the Dec/Jan meetings every important but any shift toward ABS purchases would likely be foreshadowed before.
The euro kicked 5 pips higher on the headlines but has retraced because it’s largely old news.
