ECB President Draghi sent a strong easing signal for the next meeting in December

ECB President Draghi sent a strong easing signal for the ECB's next meeting 3 December, when fresh projections are available, noting that, "the degree of monetary policy accommodation will need to be re-examined at our December monetary policy meeting". Momentum for  action in December was given real heft when Draghi noted that "committees have been tasked to examine the instruments available", that the Bank is "open to whole menu of policy instruments" and "it not a wait and see but a work and assess". 

It appears that the ECB was closer to easing today meeting than many thought, Draghi noting that were a "few members" on the Governing Council who "hinted" at acting today, though it wasn't a prevailing theme and that within that, a deposit rate cut was tabled for discussion today. 

Draghi has made clear that spillovers from the emerging markets slowdown and volatility in global markets are the key threats to the ECB's growth and inflation targets. Absent a sudden sharp improvement on these fronts the staff are likely to trim their growth and inflation forecasts for 2061 and 2017, to be revealed 3 Dec.