ECB: Expect a 20bps cut and an increase in monthly asset purchases – TDS

Research Team at TDS, notes that the inflation is again negative in the euro area, and likely to stay there for much of 16H1.

Key Quotes

“Consequently, the ECB must act, but the precise composition is still debateable. We expect a 20bps cut to the depo rate, an increase in monthly asset purchases to €70-75bn/mo (and possible extension beyond March 2017), and another LTRO and NLTRO to support market liquidity. With a technical review on the table as well, the possibilities are immense, but hesitation within the Governing Council is sure to lead to at least a little disappointment on some fronts.”

Research Team at TDS, notes that the inflation is again negative in the euro area, and likely to stay there for much of 16H1.

(Market News Provided by FXstreet)

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