Draghi on market expectations in Brussels

Draghi in Brussels says the realignment of market expectations of those of the government council was immediate and smooth.

  • Labor markets are tightening, shortages in some areas

  • Pick-up in wage growth will continue

  • Domestic price pressures are rising

  • Sees a relatively vigorous pickup in underlying inflation

  • Data vindicate ECB's view on medium-term inflation

  • Sees ongoing, broad-based expansion

  • Protectionism, emerging market turmoil has increased

  • Restates ECB guidance on asset purchases and interest rates

Hawkish stuff and a bit of EUR/USD strength. The implied odds of an Oct 2019 rate hike and a second hike in Dec 2019 crept up on his statement.

More to come