Analysts react as ECB expects best, but prepares for worst
"While Mr Draghi stated the [adjustments to its bond purchase limits] were intended to ensure the smooth implementation of the current programme, he also said it was a sign of readiness to adapt the parameters of the programme [...] the prospect of a substantial divergence of monetary policy in the euro-zone and US remains very much in place, with corresponding downside risks for the euro versus the US dollar." - Jonathan Loynes, Capital Economics
With its statement, the ECB did not pre-announce further quantitative easing. Instead, the ECB made a conditional statement: if things get worse, the ECB will act. But as far as such conditional statements go, the ECB was rather clear. It would not take much further turbulence to trigger an ECB response. We can count this as a clear verbal intervention." - Holger Schmieding, Berenberg
"The ECB’s cut in its consumer price inflation forecasts for the Eurozone were more marked. It was reduced to just 0.1% (from 0.3%) in 2015, 1.1% (from 1.5%) in 2016 and 1.7% (from 1.8%) in 2017. This was primarily due to lower oil prices as well as the trimming of the growth projections. This compares to the ECB target for consumer price inflation of “close to, but just below 2%. In the meantime, the ECB will undoubtedly be hoping that the very real possibility of more QE to come will exert downward pressure on the euro, which would be beneficial for lifting growth and inflation prospects." - Dr.Howard Archer, IHS Global Insight
"In light of the weak inflation outlook and ECB’s downward revisions, we retain our call that the ECB will need to ease monetary policy further before year-end, most likely by extending its QE programme. Although we believe a cut to the rate of the deposit facility would probably be more efficient in weakening the euro, we draw from today’s press conference and the absence of discussion by the Governing Council (GC) that a deposit rate cut remains unlikely." - Philipe Gudin, Antonio Garcia Pascual, Barclays
"The ECB 2015 inflation forecast for the Eurozone now stands at 0.1% so with downside risks could end up as annual deflation. In other words, QE has so far completely failed to help the ECB reach its inflation target. Mr Draghi said the ECB felt it was too premature to know if the recent bout of volatility would have a more lasting effect on growth and inflation. Comforting to know those in control of monetary policy are in the same boat as the rest of us." - Jasper Lawler, CMC Markets UK