J.P. Morgan said Thursday a continuing recession in Europe will lead the European Central Bank to ease monetary policy further with rate cuts and another lending measure known as LTRO
After the day's weak manufacturing reports for the region, "the ECB will feel more pressure to deliver a monetary response, even though it feels that is has already done a lot to support the region. This response could, for example, be done through interest rate cuts or through further liquidity measures," Greg Fuzesi, an analyst at J.P. Morgan, wrote in a note
It's likely the ECB will start in June by extending its current shorter-term liquidity measures beyond July, while the announcement of a one-year long-term refinancing operation could be made at officials' July meeting
"Beyond this, we expect the main refi rate to be cut 25 basis points at the September meeting," he wrote. The euro briefly spiked up, which could partially be explained by the note, said Christopher Vecchio, a currency analyst at DailyFX
1 comentario:
Draghi insta a dar salto valiente para salvar el euro
El presidente del Banco Central Europeo, Mario Draghi, llamó el jueves a los gobiernos a dar un salto valiente de imaginación política para salvaguardar el futuro de la zona euro.
En un discurso en Roma, Draghi aseguró que tomaría tiempo para que se vean los beneficios completos de los préstamos baratos del BCE a tres años a los bancos, y que ahora la responsabilidad era de los bancos, y especialmente de los gobiernos, para tomar sus propias acciones decisivas.
Publicar un comentario