ECB members continue to weigh on the inflation outlook

  • ECB will probably keep current policy setting in place for quite some time

Meanwhile, ECB's Rehn is also out saying that the central bank has managed to avoid the long-run threat of deflation but sees a risk that inflation will continue to be slow.

In other words, they are staying guarded for now and aren't viewing the latest softness in inflation data to be of much urgency just yet. But with every month that goes by and we still see conditions more subdued, we'll see how much more they can tolerate.

As a reminder, we'll be getting Eurozone inflation data on Friday this week with core inflation expected to remain at a record low of +0.4% y/y. Balanced.