In the last 48 hours we have learnt a fair bit about where central banks sit with regards to policy, although the end result seems to be that we are in for...

In the last 48 hours we have learnt a fair bit about where central banks sit with regards to policy, although the end result seems to be that we are in for further low volatility, for now. The ECB meeting went as planned, but Mario Draghi has pushed the market into believing we are going to see easing of some description. A lot now hinges on the June 3 European 'flash' CPI print and depending on the outcome, it will determine how traders will respond. Easing is not a done deal, but one would suspect that a cut to the refinancing rate is a done deal, with the lending rate also being cut from 75bp as well. We may even see negative deposit rates, thus penalising banks for holding funds with the central bank. (VIEW LINK)