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More cheap loans, lower forecasts, no rate rises – the ECB is worried

Markets have reacted swiftly to the latest ECB meeting which has seen a significant downward move in inflation and growth forecasts, and an announcement that they will launch a third trench of cheap bank loans. NAB’s David de Garis tells Phil Dobbie that the central bank is clearly worried about the domestic European economy, even if Mario Draghi is blaming the downturn on external factors. Across the English Channel Theresa May’s hopes of a new deal seem to be dashed, while across the Atlantic Lael Brainard sounds like she’s discounted at least one rate rise from the Fed. Even a surprise increase on non-farm hourly wages tonight is unlikely to spur the Fed into action anytime soon.

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