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Beecroft: Why the ECB could cut rates to minus 1%

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May 08, 2014 beecroft, business, council, cut, decision, deposit, deposit rate, draghi, ecb, economics, euro, euro dollar, euro rate, euro strength, europe, european central bank, european economy, eurozone, eurusd, exchange, exchange rate, finance, foreign exchange, forex, fx, macro, mario, mario draghi, negative, negative rates, news, nick, rates, saxo, saxo bank, saxo capital markets, saxo tv, tradingfloor.com, tv, usdeur, video
There appears to be a significant change of mood at the top of the European Central Bank, according to the Chairman of Saxo Capital Markets, Nick Beecroft. He says Thursday's news conference by President Mario Draghi was highly significant in that he appeared to abandon his former policy of never pre-committing to monetary policy actions and that we'd see some sort of move in June.
Nick thinks the ECB will cut its deposit rate by 25 basis points next month but that would only be the start. He says he wouldn't be surprised to see a minus one percent rate by the time this process is over. It's evident from Draghi's comments, says Nick, that the council is severely concerned about a prolonged period of low inflation and they're becoming obsessed by the strength of the foreign exchange rate.