ECB: three key takeaways – BBH

By FXStreet FXStreet (Guatemala) – Analysts at Brown Brothers Harriman explained the aftermath of the ECB.

Key Quotes:

“There are three key takeaways from Draghi’s comments. First, the ECB has raised the ceiling of sovereign bond ownership to 33% from 25%. This eases a self-imposed constraint on purchases, and will give the ECB more operational flexibility.”

“Second, the ECB staff shaved growth forecasts lower. This year’s GDP growth is seen at 1.4%, down from 1.5%. Growth next year was cut to 1.7% from 1.9% and 2017 GDP growth was reduced to 1.8% from 2.0%. ”

“Third, inflation forecasts were cut by a bit more than growth. CPI this year is expected to rise by 0.1% rather than the 0.3% estimated in June. The 2016 inflation forecast was cut to 1.1% from 1.5%. The 2017 CPI forecast was trimmed to 1.7% from 2.0%.”
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Source:: FX Street