European Central Bank sticks to easy money pledge despite better growth

Once again the central bankers talk out of both sides of their mouth.  Mario says one thing, spooks the markets and then unwinds his statement and he is once again the brilliant hero for the markets to applaud. Are you nervous yet?

FRANKFURT (REUTERS) – The European Central Bank left its ultra easy monetary policy stance unchanged as expected on Thursday (July 20), keeping rates at record lows and even leaving the door open to more asset buys if the outlook worsens.

But the prospect of reduced monetary stimulus has kept financial markets edgy, with investors nervously sifting through clues to gauge how big central banks around the globe will unwind unconventional policy that have kept borrowing costs at rock bottom.

The biggest headache for the ECB is the apparent disconnect between inflation and growth. Having bought trillions of euros worth of government and corporate debt for years, the ECB has rekindle growth and the euro zone is creating jobs faster than expected.