ECB announces measures
No changes in any rates
- ECB raises monthly bond purchases by 120B by year-end (not per month)
- Additional LTROs will be conducted to provide immediate liquidity
- Says considerably more favourable terms will be applied during period from June 2020 to June 2021
- Rates on new LTROs will be 25 bps below average rate applied in eurosystem’s main refinancing operations
- Raises amount taht counterparties can borrow in LTROs to 50% of their stock of eligible loans
- Continue to expect QE programs to run as long as necessary and end shortly before ECB ready to raise rates
The market was sniffing around for an interest rate cut and it didn’t come. The euro has risen