ECB to announce new easing package, some previews

ECB rate decision is the mega events today. It’s widely expected to announce a package of stimulus measures. But up till now, it’s unsure what the exact package would be. Opinions are rather divided, leaving much room for disappointments for both sides. Additionally, ECB will release new economic projections which would be closely watched too.

Here is our take on the package:. 1. Deposit rate cut by -20bps to -0.60%. 2. Two-tiered system to exempt some backs on paying deposit interests. 3. Restart QE at EUR 30B per month. 4. Adjustments to TLTRO. 5. Change of forward guiance to keep interest rates low well past horizon of QE.

More in ECB Preview – Awaiting New Easing Package

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• ECB Meeting: Is ‘Super Mario’ Coming with a Bazooka or a Toy Gun?
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• Why Banks Going To Suffer With ECB’s Decision?
• ECB Research: Enough Talking, Now is the Time for Action