• ECB should avoid hard triggers based on spreads for anti-fragmentation tool
• Comfortable with a 50 bps rate hike in September
• 200 bps worth of rate hikes are needed „relatively fast“
• Inflation is at risk of moving to a higher regime

In case you missed it, the ECB is pretty much likely to go with a „QE but not QE“ option though there will be controversy surely when it is all about backstopping Italy at the expense of others.

This article was written by Justin Low at www.forexlive.com.