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28 Feb 2014
Flash: Dual Central Bank chatter as Yellen testifies - Danske Bank
FXStreet (Barcelona) - Pernille Bomholdt Nielsen, Analyst at Danske Bank notes that yesterday was a busy day for Central Bank dialogue.
Key Quotes
“Yesterday, Yellen said it would take a significant outlook change to alter tapering in her semi-annual testimony before Senate. In addition, she argued it is difficult to gauge the significance of the weather effect, suggesting that we need to wait for more data, which will not be distorted by the weather.”
“This confirmed that continued tapering is very likely in March and that the bar is high for a change in April.”
“Draghi spoke last night and, despite some dovish comments, he did not provide much new information. He said the ECB is ‘ready to act to counter downside inflation risks’ and if inflation reaches a new cycle low in February this is likely to lead to more easing next week.”
“Moreover, we expect the forecast for 2016 to show inflation below the 2% target in the medium term.”
Key Quotes
“Yesterday, Yellen said it would take a significant outlook change to alter tapering in her semi-annual testimony before Senate. In addition, she argued it is difficult to gauge the significance of the weather effect, suggesting that we need to wait for more data, which will not be distorted by the weather.”
“This confirmed that continued tapering is very likely in March and that the bar is high for a change in April.”
“Draghi spoke last night and, despite some dovish comments, he did not provide much new information. He said the ECB is ‘ready to act to counter downside inflation risks’ and if inflation reaches a new cycle low in February this is likely to lead to more easing next week.”
“Moreover, we expect the forecast for 2016 to show inflation below the 2% target in the medium term.”