Comments by ECB member Benoit Coeure
- That may happen should economic conditions warrant such a case
- ECB could further clarify the pace at which it expects to remove policy accommodation
- Risks of publishing a precise numerical forecast of future path of policy rates are, however, likely to outweigh the benefits
- A further clarification of reaction function might help market participants better anticipate likely future path of short-term interest rates
- Uncertainty around inflation outlook is receding and a sustained convergence of inflation to levels closer to ECB's aim is in sight
Well, I was a little bit excited that Coeure was talking about possible change to forward guidance by the ECB and then he takes it all back by saying that the risks are likely to outweigh the benefits. So, pretty much a buzz kill but at least it may stir up some discussions that the ECB could possibly hint at clearer communication next year when it is ready to normalise monetary policy.
