More upbeat ECB keeps ammunition in reserve

The ECB nudged up its 2016 growth and inflation forecasts yesterday, arguing the risks facing the economy had declined and supporting expectations it would keep further stimulus under wraps at least until the autumn.

Keeping rates unchanged deep in negative territory, ECB president Mario Draghi argued that more stimulus was still coming from measures approved but not yet implemented, effectively dismissing calls for more ECB action and maintaining his argument for patience.

The ECB already plans to buy €1.74trn worth of assets in an attempt to revive inflation and kick-start growth.