Today’s policy decision did not make any waves. The deposit rate was left on 2% and President Lagarde kept all options open. However, Lagarde did say that downside risks are lessening, and we would add that the doves’ case for another rate cut is too. The ECB’s decision to leave policy unchanged did not come as a surprise. Today’s meeting came with limited new information compared to September, and therefore no reason to adjust policy when this wasn’t necessary last month. This was also reflected in the short monetary policy statement and a fairly short press conference, which felt like President Lagarde was running ... (full story)