ECB: Cacophony of views - Rabobank

ECB speakers have been active since the January policy meeting, and despite calls for homogenous communication by, among others, Mr. Vasiliauskas, this has led to somewhat of a cacophony of views, according to analysts at Rabobank.

Key Quotes

“Governing Council members have been relatively silent on the euro, with only a few remarks that its impact on the inflation outlook will need to be watched. EUR has dropped from its recent highs around the January meeting, but it is still at relatively high levels.”

“Conversely, the sudden and sharp correction in equity markets has been a focal point for the ECB. The ECB is of course keen to find out whether the sell-off is a signs that the market isn't ready to stand on its own two feet; that is, to what extent valuations are based on continued central bank support and low rates, rather than a genuine improvement in the fundamental outlook.”

“Meanwhile, the vice-presidential race is on, with Ireland’s Lane and Spanish Economy Minister De Guindos in the running to succeed Mr. Constancio in June. We note that both countries can make a good case for the seat, but we could also see Lane succeed Praet as ‘chief economist’ next year.”