ECB Keeps Rates Unchanged, Says Ready To Expand QE If Outlook Worsens; Euro Slides

There was no surprise in the ECB’s monetary policy statement released moments ago, in which the central bank kept all three of its rates unchanged as expected, however it did confirm that QE is intended to to run “until the end of December 2017, or beyond, if necessary,” and in a surprise addition added that “if the outlook becomes less favourable, or if financial conditions become inconsistent with further progress towards a sustained adjustment in the path of inflation, the Governing Council stands ready to increase the programme in terms of size and/or duration.”
The Euro appeared surprised by the bolded text and promptly dropped 20 pips to fresh session lows of 1.088.
Full release below:

This post was published at Zero Hedge on Apr 27, 2017.