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ok a serious one on the #ECB decisions today 3d
1) TLTRO is a yawner. TLTRO is secured funding, so I never thought that not doing TLTRO would be an issue as banks reposess collateral and can eventually refinance it elsewhere.
1) TLTRO is a yawner. TLTRO is secured funding, so I never thought that not doing TLTRO would be an issue as banks reposess collateral and can eventually refinance it elsewhere.
1cont) On the pricing mechanism of TLTRO III the “incentives” are not yet out so I cant judge if it will be lower or higher than -0.4%
2) Forward guidance and rates: here is the main message. Ecb has lowered 2021 Cpi to 1.6% far from the “2% or slightly below 2%” target
2) Forward guidance and rates: here is the main message. Ecb has lowered 2021 Cpi to 1.6% far from the “2% or slightly below 2%” target
2cont) BUT has moved the first rate rise timing only by one quarter to Dec ’19 for Sept ’19.
3) MY TAKE IS THAT THE ECB HAS GIVEN UP ON INFLATION TARGET. FROM WHATEVER IT TAKES TO WHATEVER.
4) that explains the bond rally and equity giving up
Regards
3) MY TAKE IS THAT THE ECB HAS GIVEN UP ON INFLATION TARGET. FROM WHATEVER IT TAKES TO WHATEVER.
4) that explains the bond rally and equity giving up
Regards
