7 Nov 2013
Flash: ECB took aggressive action - TD Securities
FXstreet.com (London) - Richard Kelly, Head of European Rates and FX Research at TD Securities note that the ECB moved on worries of a prolonged period of low inflation.
Key Quotes:
“The ECB surprised markets and us with a 25bps cut to both the refi and marginal lending rates, leaving the deposit rate unchanged”.
"They went further, however, now extending the fixed-rate, full-allotment tenders from mid-2014 to mid-2015”.
"This effectively extends their soft forward guidance to mid-2015 as to the period they seemingly see limited chances of them having to raise rates”.
Key Quotes:
“The ECB surprised markets and us with a 25bps cut to both the refi and marginal lending rates, leaving the deposit rate unchanged”.
"They went further, however, now extending the fixed-rate, full-allotment tenders from mid-2014 to mid-2015”.
"This effectively extends their soft forward guidance to mid-2015 as to the period they seemingly see limited chances of them having to raise rates”.