ECB minutes were slightly on the dovish side – Danske Bank

Chief Analyst, Jakob Christensen at Danske Bank, suggests that in their view, the ECB minutes yesterday were slightly on the dovish side, but they keep our call on the revisit forward guidance in March.

Key Quotes

“The Minutes said on the issue that ‘language pertaining to the monetary policy stance could be revisited early this year as part of the regular reassessment at the forthcoming monetary policy meetings.’ As we pointed to earlier, the QE flexibility is first in line with the minutes saying ‘some members expressed a preference for dropping the easing bias regarding the APP’. In line with our view, the ECB board members are not concerned about the exchange rate path through to inflation for now.”