Research
Tip: To personalise the research list, click the gear symbol above.


Choose type:


EMU CommentECB postpones rate hikes, announces TLTRO3

  1. ECB changes rate hike guidance, sees rates on hold througout 2019
  2. TLTRO3 announced
  3. Softer than expected
ECB changes rate hike guidance, sees rates on hold througout 2019
The ECB changed the wording on policy rates. The previous statement that rates would "remain at their present levels at least through the summer of 2019" was changed to "at least through the end of 2019". We continue to expect no rate hike either this year or next while the market is pricing less than 20bp until the end of 2020.
TLTRO3 announced
The ECB announced new TLTROs, i.e. attractive funding to eurozone banks, with incentive to increase lending. The new 2-year repos will start in September 2019 and continue until March of 2021.
Softer than expected
While the ECB was expected to both postpone rate hikes and release new repos eventually, it wasn't fully expected to come already today. Hence, today's decision should be seen as a bit more dovish than expected by markets.

Disclaimer

Claes Måhlén

Chief Strategist

Fixed Income

clma02@handelsbanken.se

Latest analyses

2019-04-01

FI Comment

2019-03-07

EMU Comment

2019-02-13

Fast Comment Sweden