26 Nov 2013
Flash: Euro remains resilient in near term against ECB easing expectations - BTMU
FXstreet.com (Barcelona) - Lee Hardman, FX analyst at the Bank of Tokyo Mitsubishi UFJ notes that the euro continues to remain resilient in the near-term to building expectations of further ECB monetary easing.
Key Quotes
“ECB Governing Council member Hansson became the latest ECB member yesterday to leave the door open to further easing noting that “I think it looks like inflation will be towards the lower end (of their target) for some time”.”
“On the policy front he noted that “the options on rate cuts are still not exhausted and there are all kinds of other measures that are still on the table”. On the prospect of introducing negative deposit rates, he stated that “we are technically ready to do it” and didn’t rule out lowering rates by smaller than 0.25 point increments.”
“He also noted that a further cut in the refi rate could be accompanied by lowering the deposit rate into negative territory to prevent a further narrowing of the rate corridor, which creates the unwanted incentive for banks to manage their liquidity through their central bank.”
Key Quotes
“ECB Governing Council member Hansson became the latest ECB member yesterday to leave the door open to further easing noting that “I think it looks like inflation will be towards the lower end (of their target) for some time”.”
“On the policy front he noted that “the options on rate cuts are still not exhausted and there are all kinds of other measures that are still on the table”. On the prospect of introducing negative deposit rates, he stated that “we are technically ready to do it” and didn’t rule out lowering rates by smaller than 0.25 point increments.”
“He also noted that a further cut in the refi rate could be accompanied by lowering the deposit rate into negative territory to prevent a further narrowing of the rate corridor, which creates the unwanted incentive for banks to manage their liquidity through their central bank.”