Events that marked the week:
Focus of the Thursday's session was on ECB interest rate decision and the following press conference. The European Central Bank dropped a long-standing pledge on Thursday to increase its bond buying if needed, taking another small step in weaning the euro zone economy off its protracted stimulus. Keeping its broader policy unchanged, the ECB said it could still extend its 2.55 trillion euro ($3.16 trillion) bond purchase scheme beyond September if needed. But it skipped a reference to bigger purchases, a signal that it remains on track to end a three-year-old stimulus scheme before the end of 2018.
“The outlook for growth confirms our confidence that inflation will converge toward our inflation aim of below, but close to, 2 percent,” ECB President Draghi said. “At the same time, measures of underlying inflation remain subdued and have yet to show convincing signs of a sustained upward trend.” “Our mandate is in terms of price stability. Victory cannot be declared yet,” Draghi told a news conference. Dropping its ECB’s so-called easing bias was largely symbolic as few if any expected bigger bond buying. Even Draghi called the move a “backward-looking measure”.
This week markets will be looking at:
Final CPI (Friday 11:00)
