Comments from Michael Bonello are hitting the wires saying that nothing is ruled out on rates and that the ECB is working on an exit strategy from generous liquidity. With Eurozone inflation way below the ECB’s mandate of 2% as price stability, the focus should be on spurring the economy to help lift inflation rather than worrying about exit strategies. The ECB saw fit to raise rates last June on what was basically a sharp rise in Oil prices, now the boot is on the other foot, the ECB now wants us to focus on Core prices. You can’t have it both ways.
Eur/Usd has dipped below 1.3900 as Cable sales impact.
