ECB boss now up n running in Frankfurt
- downside risks have increased in recent months
- strength of the underlying recovery is modest
- ECB can not be relaxed about low core inflation
Limited downside reaction from the euro so far as none of this is exactly new but dovish tones still
EURUSD 1.0685 EURGBP 0.6995 EURJPY 131.44
- level of the deposit facility rate can also empower the transmission of APP
- at our meeting in Dec we will thoroughly assess the strength and persistence of the factors that are slowing inflation back to 2%
- in making our assessment of the risks to price stability we will not ignore the fact that inflation has already been low for some time
Euro continuing its journey south now at 1.0678,0.6990,131.32
