On a quiet day for economic data, the focus in the Eurozone has been on a series of speeches, with the ECB’s Philip Lane telling a conference yesterday that the ECB is ‘not at a limit as of yet’ in regards to monetary policy. He seemed to call for further policy intervention, saying that they should be discussing which policies would result in the economy growing faster.
Meanwhile, Luis de Guindos warned that continuing low interest rates would likely have an impact on banks’ profitability, but the comments had little impact on the markets. He previously said last week that he believed that Europe is only facing a ‘very low’ risk of entering recession, although growth is ‘below potential’.