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19 May 2014
ECB likely to cut - BBH
FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman suggested in recent days, it has become clearer that the ECB is more likely to cut rates than initiate an asset purchase program.
Key Quotes:
"In recent days, it has become clearer that the ECB is more likely to cut rates than initiate an asset purchase program. Just to recap, there are three interest rates the ECB could."
"The first is the lending rate, which stands at 75 bp and marks the top of its interest rate corridor".
"Usually in a low or falling interest rate environment, the rate ceiling is of lesser importance. However, a lower lending rate, under current conditions, could help reduce the volatility of overnight rates (EONIA)."
Key Quotes:
"In recent days, it has become clearer that the ECB is more likely to cut rates than initiate an asset purchase program. Just to recap, there are three interest rates the ECB could."
"The first is the lending rate, which stands at 75 bp and marks the top of its interest rate corridor".
"Usually in a low or falling interest rate environment, the rate ceiling is of lesser importance. However, a lower lending rate, under current conditions, could help reduce the volatility of overnight rates (EONIA)."