Lazard Comments on BCE decision

As was expected, the ECB has refrained from announcing any change to its monetary policy settings.

The strength of the euro was recognised with Mario Draghi mentioning exchange rate volatility quite early in the introductory statement but he did not push more against this trend. The question about the strategy following next September was left unanswered. Come next march, the release of new staff forecasts might provide the ECB with the opportunity to announce some changes to the forward guidance and maybe provide some hints as to what will happen after September.
As the current economic expansion in the euro area is largely self-sustained, we do not expect a significant impact on growth from a gradual change in monetary policy.

Julien-Pierre Nouen – Chief Economic Strategist – Lazard Frères Gestion