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4 Jul 2014
ECB's TLTRO expected to improve lending - Investec
FXStreet (Barcelona) - Jonathan Pryor, Corporate Treasury Analyst at Investec, expects the ECB's TLTRO to prevent risks from deflation and as an instrument to ignite lending in the region.
Key Quotes
"The ECB left interest rates unchanged yesterday and President Draghi noted that monetary accommodation would be enhanced through the introduction of targeted long term refinancing operations. This is aimed at improving the flow of credit and countering the risk of deflation."
"Suggestions are that this will be initiated from September. With all other factors left unchanged there was very little effect on euro exchange rates and day ranges remained relatively tight. Most notably for euro crosses GBPEUR made new highs above 1.26 and the pair has continued this trend today."
Key Quotes
"The ECB left interest rates unchanged yesterday and President Draghi noted that monetary accommodation would be enhanced through the introduction of targeted long term refinancing operations. This is aimed at improving the flow of credit and countering the risk of deflation."
"Suggestions are that this will be initiated from September. With all other factors left unchanged there was very little effect on euro exchange rates and day ranges remained relatively tight. Most notably for euro crosses GBPEUR made new highs above 1.26 and the pair has continued this trend today."