The past bias of keeping rates sufficiently restrictive is no longer warrantedWe are close to achieving our targetInflation momentum in services sector has dropped recentlyEurozone growth likely to take a hit from fresh US protectionist measures
This just continues the same commentary after their policy meeting last week. With traders already pricing in ~93% of a 25 bps rate cut for January, there is little scope for surprises as the PMI data in the euro area remains weak and ECB policymakers are vindicating said pricing for now.
This article was written by Justin Low at www.forexlive.com.
