Comments by ECB member Vitas Vasiliauskas

  • Expects upward movement of core inflation over the medium-term
  • Does not see any need for continuing QE beyond December
  • Optimistic about economic growth, but sees possibility of downside risks
  • Trade conflicts could turn current balance of risks to negative side
  • QE has limits, but ECB has other tools including long-term loans

If that's the case, then it's likely that we won't see any rate hikes by the ECB during Draghi's term. Should they plan to hold rates steady through the summer and then only discuss thereafter, a timing of Q3 2019 may be tight considering we'll have a new ECB president in November 2019.

Regardless, it's a long way to go still so let's see how things go over the next year or so. Besides, we're talking about central bankers. Tomato is a fruit one day, and the next it's a vegetable.