Market news
13.11.2019, 10:39

ECB: Rate cuts, more QE and looser TLTRO all possible – ABN AMRO

Nick Kounis, head of financial markets research at ABN AMRO, points out that ECB Vice President Luis De Guindos earlier this month talked up the ECB’s easing options.

“He said that ‘If necessary, we could cut interest rates further. We could increase the volumes in our asset purchase programme. We could further improve the conditions for our targeted longer-term refinancing operations, the TLTROs. We have definitely not exhausted all our options. We have scope to take further action, and we will take further action should it become necessary’.  However, he added two caveats. He said that the ‘negative side effects (of low interest rates) are becoming ever more pronounced’. In addition, he repeated the ECB’s call for fiscal easing, saying that ‘with interest rates very low for longer, fiscal policy would have a much bigger impact on the economy than would otherwise be the case. Although the ECB judged that recession risk was low, he noted that ‘the real threat at present is an extended phase of extremely low growth, below potential.’ At the same time ‘inflation expectations have recently shown a marked decline.’ Finally, he still judged that risks to the outlook were to the downside despite better news on Brexit and the trade conflict, though the risks were now ‘slightly less’. Overall, we do not expect further easing at the next ECB meeting, though we do think that the central bank will act again early next year as growth and inflation disappoint.”

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location