Exit strategy has been a big topic of discussion for Weber, Stark and others on the ECB but for Ireland’s Hurley, it is not on the radar. He says rates must remain accommodative as long as required. Policy will only be adjusted when definitive signs of significant improvement. Inflation will turn negative for a time this year but GDP will not fall as much in Q2 as in Q1, he says.
EUR/USD is consolidating in the high 1.3950s as the reflation trade suffers from significant profit-taking and risk aversion rises.
