ECB’s Peter Praet speaking in Brussels

  • The transition towards a normalisation will begin once we have established that there is asustained adjustment in the path of interest rates
  • Once the eCB governing council judges that the thre criteria for a sustained adjustment has been met, net asset pourchases will expire, in line with our guidance
  • Policy rates being held at present levels past the end of QE will contribute to holding the short to intermediate portions of the yield curve in check

In other words, low for longer will remain in place. That won’t stop the market factoring in rate hike expectations once QE has come to its end.

Ryan Littlestone

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