ECB's Villeroy: There is reason to think that economic slowdown is temporary

ECB governing council member, Villeroy, comments

• Eurozone is in a significant slowdown, not a recession
• ECB wanted to show it can react without overreacting
• France is resisting slowdown better than Germany, Italy

Guess there are some things that just won't change. Regardless of whether or not he thinks the slowdown is temporary, the ECB's decision to revise its forward/rate guidance yesterday is rather significant as it removes upside potential from positive economic data in the coming months. In turn, it also gives markets an additional benchmark to price in further negativity if economic data continues to sour down the road.