Tag Archives: euro area monetary policy

After Draghi’s shift in Sintra, we still see the ECB rate cuts as a starter and a first step before the implementation of a broader policy package.We expect the European Central Bank (ECB) to prepare markets for the delivery of fresh monetary stimulus following Mario Draghi’s unequivocal signal in Sintra. An adjustment to forward guidance is the most natural path for the ECB to take, by signalling that policy rates will remain at present levels “or lower”, paving the way for a 10 bp deposit...

Although the final decision will depend on US-China trade negotiations, the Fed and economic data, the ECB is likely to deliver a comprehensive easing package in September.In Sintra, Mario Draghi signalled the ECB’s unequivocal readiness for further stimulus “in the absence of improvement”. Although the final decision will depend on US-China trade negotiations, the Fed and economic data, the ECB is likely to deliver a comprehensive easing package in September.We now expect the ECB to adjust...

ECB officials have hinted at policy measures aimed at reducing the cost of negative rates for the banking sector, including a tiered system of bank reserves. Although back in 2016 the European Central Bank (ECB) ruled out tiering of bank reserves to mitigate the side effects of negative rates, the situation has since changed, and it could be implemented eventually if policy rates were to remain negative into 2020....

ECB officials have hinted at policy measures aimed at reducing the cost of negative rates for the banking sector, including a tiered system of bank reserves.Although back in 2016 the European Central Bank (ECB) ruled out tiering of bank reserves to mitigate the side effects of negative rates, the situation has since changed, and it could be implemented eventually if policy rates were to remain negative into 2020.Despite nearly four years of asset purchases and five years of negative rates,...

Today’s Governing Council meeting did little to break the seasonal torpor. We continue to expect its first rate hike to come in September 2019. There was no change in interest rates or forward guidance at today’s ECB Governing Council meeting. The Governing Council reaffirmed that bond purchases will end in December and that key interest rates are expected to remain at their present levels “at least through the summer...

Today’s Governing Council meeting did little to break the seasonal torpor. We continue to expect its first rate hike to come in September 2019.There was no change in interest rates or forward guidance at today’s ECB Governing Council meeting.The Governing Council reaffirmed that bond purchases will end in December and that key interest rates are expected to remain at their present levels “at least through the summer of 2019”.The ECB said it remained confident about the euro area’s economic...