Swiss Economicblogs.org
We think some of the ECB’s critics are missing the point. In particular, we expect TLTRO II to lower bank funding costs, mitigate the adverse consequences of low (negative) rates on bank margins, strengthen the ECB’s forward guidance and improve the transmission of monetary policy. We expect the take-up at all four TLTRO II operations to exceed EUR500bn, of which roughly EUR400bn should be rolled over from TLTRO I. The resulting reduction in terms of the cost of negative rates could be...
Read More »Scepticism over ECB’s TLTRO II programme is misplaced
