- The ECB Governing Council formally launched a comprehensive monetary policy review that shall be completed by end of 2020.
- The review will not only be confined to issues like the quantitative definition of price stability but also covers topics like financial stability, employment and environmental sustainability.
- The ECB acknowledges reduced downside risks mainly because of the US/China Phase 1 deal and looks for a stabilization of near term growth dynamics amid a moderate increase in underlying inflation.
- As widely expected, the monetary policy stance was unchanged and apparently no topic of major discussion at today’s meeting. We continue to expect the ECB to stay on hold for the time being.
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