Jan von Gerich at Nordea summarised the....>

ECB VIEW: Jan von Gerich at Nordea summarised the ECB today "the strong cyclical

momentum, the ongoing reduction of economic slack and increasing capacity

utilisation strengthen further our confidence that inflation will converge

towards our inflation aim of below, but close to, 2%". 

- Bunds started to slide soon after this, but Draghi did not follow up strongly

on this message.

- Von Gerich added "Draghi could only point to tentative signs of wage gains.

Core inflation dynamics remain weak, and the recent strengthening of the euro

make the emergence of a clear uptrend in core inflation more remote"

- Without a reality of rising inflation, Nordea have kept their view that the

PSPP will see a six months extension after September.

- Nordea also highlighted that "Draghi said many Governing Council members were

surprised by the market reaction to the December minutes. In that light, he

wanted to emphasize that the discussion on changing the forward guidance had not

even started yet". He explained the market reaction as mostly that Draghi had

not been dovish enough.