ECB governing council member, Olli Rehn, speaks in London
- Reinvestment of maturing bonds will continue beyond first rate hike
- Will discuss details of new TLTROs in meeting next week
- Ample degree of monetary policy stimulus is appropriate at the moment
It kind of feels like he's delivering the central bank's monetary policy statement with these comments. Markets have already priced in somewhat weaker expectations of the ECB being able to normalise policy over the past month, otherwise I reckon Rehn's comments would've had a more profound impact:
As seen above, the market gauge of long-term euro area inflation expectations (a signal for confidence in the ECB meeting its inflation target mandate) has fallen off after a brief recovery at the end of April to its weakest levels since 2016 now.
