Institution: Data Does Not Yet Support ECB Rate Hike, Will Remain Cautious in the Coming Months

BlockBeats News, April 30th - Berenberg Chief Economist Felix Schmidt stated that, as expected, the European Central Bank did not raise interest rates. The bank's statement was very brief, with almost no surprises. Today's released economic data is not yet supportive of a rate hike. Economic growth is weaker than expected, and although inflation is rising, it has lost some momentum. So far, inflation has been driven entirely by the direct impact of energy prices. The European Central Bank will wait and see the extent of the indirect effects in the coming months.

AFS Group Research Director Arne Petimezas stated that there was no new content in the European Central Bank's Governing Council statement, except for stating the obvious: the shock is more severe than expected in the March baseline scenario, and we are likely in an adverse scenario. (FXStreet)