Well this clears up one niggling little doubt about last weeks ECB meeting. Remember my post – when no means maybe – about how Trichet saying ?I am not telling you anything that could be interpreted as preparing a rate cut,? was actually double talk, and what he meant was I am not telling you anything, but I am winking.
Well now that other ECB stalwart, Otmar Issing, has come to our rescue and explains: “Communication is not only about being explicit. It is also about not answering questions”.
So as Reuters Chief ECB correspondent puts it: “He did it through his silence”.
Sometimes I think it may be a good thing if some of our other institutional representatives (Jean Claude Junker?) could learn from his example.
Bottom Line: this has been done this way because, as I suggested it was politically and institutionally impossible to announce a change of policy at last Thursday’s meeting, a rate change can now be expected anytime after the next meeting.