Says it will be a gradual rise in inflation to 2% buy 2016/17
Sees signs that the recovery is losing momentum
ECB forward guidance is qualitative, we don’t have thresholds (they’ve got no bar to aim for right now
)
Says markets foresee first rate hikes in 2017
We’re a long long way from the ECB putting up rates but if the latest measures do start having an effect the market will start pricing them sooner. Even so we’re looking at a decade of extremely low rates and that’s not good.
