This is a quickie from ANZ on the speech from European Central Bank President Draghi earlier this week
(bolding is mine)
- ECB President Mario Draghi, speaking on 24 May, was again making it clear that the central bank was committed to full implementation of its QE program
- and that interest rates will not rise before the ending of asset purchases.
- This is to push back on ongoing speculation that the ECB is considering tapering its asset purchases sometime soon and/or considering raising rates (including the negative deposit rate) at some point before QE is finished.
- That said, it's possible that the ECB could revise its forward guidance on rates.
- Specifically the ECB is said to be considering removing the phrases "or lower" and/or "well past" from the line "We continue to expect them (policy rate) to remain at present or lower levels for an extended period of time,and well past the horizon of our net asset purchases".
If you hadn't noted this from Draghi, just a bit of background to be aware of