6 Nov 2013
Flash: ECB to trim rates to 0.25% - RBS
FXstreet.com (Barcelona) - The RBS Economics Team are expecting the main policy rate (refi rate) to be cut by 25 bp to 0.25%, when the ECB meets tomorrow.
Key Quotes
“The corridor is expected to be narrowed, with the deposit rate left unchanged at 0%. No new excess liquidity 'wheezes' are anticipated, with the minimum reserve requirements seen being left unchanged, SMP purchases continuing to be sterilized and no new LTRO expected.”
“At the press conference, on the assumption that the policy rate is cut, President Draghi is not expected to toughen his (dovish) forward guidance and the central bank’s current easing bias may actually be withdrawn.”
“He may sound the alarm on the currency. A reference to the risks to the inflation outlook from the currency could be inserted in the Statement depending on how much the EUR weakens into the meeting.”
Key Quotes
“The corridor is expected to be narrowed, with the deposit rate left unchanged at 0%. No new excess liquidity 'wheezes' are anticipated, with the minimum reserve requirements seen being left unchanged, SMP purchases continuing to be sterilized and no new LTRO expected.”
“At the press conference, on the assumption that the policy rate is cut, President Draghi is not expected to toughen his (dovish) forward guidance and the central bank’s current easing bias may actually be withdrawn.”
“He may sound the alarm on the currency. A reference to the risks to the inflation outlook from the currency could be inserted in the Statement depending on how much the EUR weakens into the meeting.”