ECB policy to drop reference to possible rates cuts - UOB

Analysts at UOB noted recent noise around ECB.

Key Quotes:

"ECB’s policy board member Mersch said that the ECB should drop its reference to possible rates cuts from its policy communication.

Mersch said “How much longer can we continue to talk about “even lower rates” as being a monetary policy option?” Mersch opined that the ECB cannot lower interest rates to an unlimited extent and that the prospects for economic growth in the Euro area are increasingly positive."