Central Bank chatter: Fed and ECB divergence - ANZ

Analysts at ANZ noted the Central Bank charter from overnight.

Key Quotes:

"Atlanta Fed President Bostic (voter) said that hitting the 2% target was a good thing and that he is comfortable “with some degree of overshooting the 2% target.” On the labour market he said that “job creation is far above what we need to sustain the status quo… we would have expected some significant upward pressure on wages.” He still prefers two rate hikes this year. 

ECB Executive Board member Peter Praet said that the “deceleration from the exceptionally high growth rates observed in the second half of 2017 had been expected” and “recent information remains consistent with a solid and broad-based expansion in domestic demand.” However, he added, “the slowdown has come sooner than anticipated. The downward surprise in incoming information has been broad-based… Overall, an ample degree of monetary stimulus remains necessary.”