FXStreet (Edinburgh) – Analysts at Danske Bank belive the ECB could implement further easing in the next months.
Key Quotes
“Speculation that the ECB will ease again increased this week as the low oil price together with the weaker-than-expected inflation prints for December could force it to defend its inflation mandate”.
“A full 10bp deposit rate cut is priced in for October 2016 while a cut in March is priced with around a 50% probability”.
“In our view, particularly the pricing in March is aggressive and keeping in mind the ‘light’ menu of easing announced in December, we believe more is needed to convince the majority of the Governing Council to step up the easing”.
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