ECB Preview: Tempering expectations - Rabobank

According to analysts at Rabobank, ECB officials have clearly been sending the message that the Governing Council is considering changes to the guidance in the near-term.

Key Quotes

“We believe January is too early for this, but we do expect hints for the March meeting.”

“Markets have picked up on the more hawkish tone on asset purchases and forward guidance.”

“Although we agree the ECB will soon change its message, we think markets have overreacted.”

“Mr. Draghi may use verbal intervention to re-align market expectations with the ECB’s intentions over the medium term.”