ECB preview: Silence is golden

From think.ing.com

After all the excitement ahead of the March meeting and speculation about how the European Central Bank would react to higher inflation rates and bond yields, it took a while for the ECB to communicate its reaction function. Almost six weeks later and after several speeches, interviews, blog entries and minutes later, the ECB has finally brought clarity. In short, the ECB will look through any temporary increases in headline inflation and will not accept any increases in bond yields unless they are the result of improved growth prospects. The front-loading of asset purchases was meant to support this view. With ... (full story)