ECB Watch - More policy action still ahead

Developments over the last month have not clearly met either of the ECB’s two “contingencies” for further policy action. Nonetheless, the ongoing danger of deflation and dovish signals from several Governing Council members – not least Bundesbank President Jens Weidmann – suggest that further stimulus is still in prospect. And given the ECB’s recent apparent predilection for surprise, an April move cannot be entirely ruled out.