"Actions speak louder than words," or so the saying goes. But for global central banks fighting off global recession since 2008, it has often been the case that their words have proved just as important as actions in explaining more unconventional monetary policies, and moving markets.
We expect no action from the European Central Bank (ECB) when it meets this Thursday. However, we do think investors should pay close attention to ECB President Draghi's words at the post-decision press conference. He is likely to respond to three key questions that many in the markets, including us, would like answered. First, are current policy measures like negative interest rates doing more harm than good? Second, are more out-of-the-box policy options like "helicopter money" in discussion? Third, what is the ECB's early take on longer-term growth and inflation?