The ECB have left interest rates on hold as widely expected and we now turn our attention to the press conference at the bottom of the hour.
The big question now is what, if anything, Draghi & Co may have up their sleeves after last month’s surprise rate cut and dovish rhetoric.
Have they already done enough in the wake of recent data giving not quite such a deflationary picture, and a tiny improvement in employment levels ?
Well, the data has proved only that the Eurozone is a diverse area and highlighted that a “one size fits all ” approach may not be enough, or indeed appropriate, at this difficult time.
The ECB will want to keep its powder dry but despite the recent jaw boning from many of its governing council members do they have as many tools at their disposal as they would like ?
I believe that the ECB are very much in between a rock and a very hard place, as are the Fed, and both are suffering delationary pressures whether they like to admit it or not.
I reckon that Draghi will keep his cards close to his chest today and he will hope to buy some more time before being forced into further action.
But time, as we know, doesn’t always bring the desired results.
