UBS: Potential change in stance for ECB

Union Bank of Switzerland’s analysis team points out that ECB officials lined up last week to flag a potential change in stance.

Key Quotes

“It's now close to a year since ECB first highlighted that Europe was undergoing a "temporary slowdown," originally attributed to cold winter weather. This weekend Olli Rehn noted a “weakening of the economy,” which Francois Villeroy de Galhau said could prompt a change in guidance if it becomes clear the situation isn’t temporary.”

“Benoit Coeure said new loan operations (TLTRO) are being discussed. Our view is that ECB will not raise rates until the spring of 2020.”