SEB Research comments on the outcome of today's ECB July policy meeting.
"The ECB left policy rates, QE programme and its forward guidance in terms of bias, timing and sequencing unchanged at its meeting today. The outcome was in line with what majority of forecasters had expected.
Our impression is that Draghi struggled to not say anything that would worry the markets, but at the same time not make promises he did not have support to fulfill. Possibly this could be due to differing views within the governing council, even-though Draghi said that the council was unanimous.
Exit strategy was not discussed during the meeting and we reiterate our view that the ECB is likely to announce changes to the QE programme at its next meeting on Sep 7," SEB argues.
