Lagarde Q&A: Now is not the time for foward guidance, it's time for data dependency

<ul><li>PEPP wasn't discussed at this meeting</li><li>Our determination to bring inflation to 2% is intact</li><li>Rise in yields is a spillover that we take into account, it helps bring inflation down</li><li>What we are seeing is a very-strong transmission of our monetary policy in the banking system in particular</li><li>Hold doesn't mean we will never hike again</li><li>We know that growth has weakened, we will have no forecasts in December</li><li>PMI numbers are not indicative of vigorous growth</li><li>Decision was unanimous</li></ul><p>I think you have to take this one at face value. The ECB is in data dependent mode and is worried about some of the forward-looking PMIs but they want to see it in the hard data before moving to the sidelines and (eventually) shifting to a dovish stance.</p>

This article was written by Adam Button at www.forexlive.com.