KEY ECB INTEREST RATES:
* Unanimous decision to keep policy interest rates unchanged, as widely expected.
* No discussion about cutting rates
* Monetary policy stance accommodative
OUTLOOK FOR THE ECONOMY:
* Baseline scenario of a gradual recovery in the course of 2012 remains in place
OUTLOOK FOR INFLATION:
* Inflation rates to stay above 2% in 2012 and to fall below 2% in early 2013.
REFINANCING OPERATIONS:
* All measures unchanged in place, exit strategy premature
* No indication of another 3y LTRO
CONCLUSION: The current ECB monetary policy stance is accommodative. Therefore the ECB Governing Council saw no need for additional action at today’s meeting. In
our view the ECB’s message is that monetary policy has done enough to foster growth in the euro area. The ECB is now waiting for further actions by governments to address divergences in the euro area and to be more ambitious to implement structural reforms. In the June meeting updated Eurosystem staff projections will show if there is any need for additional stimulus by the ECB. Meanwhile the ECB will focus on analysing the supporting effects of the 3y LTROs.
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SEB tech team