The first ECB rate hike is now priced in for late 2019, sources say - Reuters
“The first rate hike is now priced in for late 2019, and I‘m comfortable with that,” one of the sources told Reuters. He added further, that the October decision was taken very well by markets.
Sources also said that the ECB is likely to go into policy hibernation as long as the economy develops as expected.
Key quotes (Source Reuters)
We of course always discuss policy, but I don’t expect a substantial discussion before March or possibly mid-year. It’s now scheduled to go until the end of September and we’ll make the next decision relatively close to that.
If there are shocks, we will respond. We are not pre-committing so our options are open.
We’ll take stock and reaffirm that the October decision was the correct one,” a second source said. “We’ll get new forecasts, and they may be a touch higher, so that’s good, too. And we’ll have a discussion about the composition (of future asset buys). That’s about it.