Q&A from Draghi
The broad consensus was to extend and reduce purchases ( I bet Weidmann did a jig)
Buying QE below deposit rate is possible and not a necessity
Buying below deposit rate will ensure a smooth implementation of QE
A bit of a roll back on how he worded it in the statement, the silver tongued devil.
The inflation outlook is pretty much the same as when we first started
Deflation risks have disappeared but uncertainty prevails everywhere
- We had no discussion on tapering today
Draghi is making clear this is an increase (or potential increase) in QE, not a taper. Keeping his dove hat firmly on.
