ECB: confident but more cautious in future outlook - ANZ

Analysts at ANZ explained that the ECB’s confidence that inflation will return to target over the medium term is “untempered” despite some loss of momentum in Q1 growth.

Key Quotes:

"The ECB expects a solid, broad based expansion to continue but will monitor incoming data closely. It is uncertain whether the recent slowdown is a result of temporary factors or a more durable softening in demand."

"The international climate remains supportive, but risks such as the threat of increased protectionism have become more prominent."

"The ECB governing council did not discuss the exchange rate, monetary policy or a road map for exiting QE."