The European Central Bank delivered a 10 bp rate cut in its monetary policy meeting in December, along with a'menu' of easing, which was disappointment to the markets.

This move from the ECB marked the end of easing, albeit the central bank did not deliver according to what is hinted by Mario Draghi to the markets or what is expected.

The bar of easing seems higher as Draghi showed confidence that the central bank would be reaching its inflation target, while he appeared satisfied on easing's support to the growth and inflation.

".. our main scenario of higher inflation, a stronger recovery and an unemployment rate close to its structural level supports the view that the ECB will not ease again. The risk to our expectation of the end of easing is that the ECB will eventually beforced to lower its core inflation forecast, which, in our view, is still too optimistic", says Danske bank in a research note.

EUR appreciation will challenge ECB, along with negative impact on inflation, when there is also a risk of decline in  inflation expectations, which indicate de-anchored expectations along with higher real rates.