FOREX TradingCharts.com

Financial News: ING: ECB To Wait Until September Before Easing

ING: ECB To Wait Until September Before Easing

07/05/2019 - 11:00:00 (RTTNews)

(RTTNews) - The European Central Bank is likely to wait until September before it delivers another stimulus in the form of a deposit rate cut and provide some hint at restarting asset purchases, ING economist Carsten Brzeski said Friday.

A rate is now just a question of 'when' rather than 'if', the economist said, referring to ECB President Mario Draghi's speech in Sintra, Portugal, in which he signaled that the central bank still has room to cut interest rates and adopt stimulus measures. ECB Governing Council's next rate-setting session is scheduled on July 25 in Frankfurt. "Draghi's track record in over-delivering and trying to be ahead of the curve, however, could bring a rate cut already at the ECB's July meeting. In our view a very close call," Brzeski said. "Unless the days leading up to the July meeting bring more disappointing macro data, we think the ECB will wait until the September meeting to deliver a 10bp rate cut in the deposit facility, combined with a clear commitment to restarting quantitative easing."

Policymakers are unlikely to exhaust all their policy options as they might need them in case of a disorderly Brexit, the economist said. Brzeski also pointed out that the ECB may introduce a tiering system for excess liquidity in future as a lower negative deposit rate for a longer time to come will increasingly hurt bank profitability.

The economist said it is almost certain that a new corporate bond purchase programme would be launched. Regarding the nomination of IMF Chief Christine Lagarde as the new ECB President, Brzeski said there will be little change in the ECB's monetary policy over the coming months.

"In fact, extended forward guidance, new dovishness and probably a new round of QE before she enters office have tied Lagarde to the Draghi chains going into 2020," the economist added.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2019 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Japan Inflation Data Due On Friday (02 hr(s), 18 min(s), 07 sec(s) ago)
(RTTNews) - Japan will on Friday release June numbers for nationwide consumer prices, highlighting ...Full Story»

U.S. Leading Economic Index Unexpectedly Drops 0.3% In June (09 hr(s), 33 min(s), 07 sec(s) ago)
(RTTNews) - Reflecting weaknesses in new orders for manufacturing, housing permits, and unemployme ...Full Story»

South Africa CB Cuts Interest Rate, Growth Forecast (09 hr(s), 52 min(s), 07 sec(s) ago)
(RTTNews) - South Africa's central bank cut its key interest rate on Thursday and slashed its ...Full Story»

Philadelphia Manufacturing Shows Substantial Reacceleration In July (10 hr(s), 46 min(s), 07 sec(s) ago)
(RTTNews) - After reporting nearly stagnant Philadelphia-area manufacturing activity in the previo ...Full Story»

U.S. Weekly Jobless Claims Rise In Line With Estimates (10 hr(s), 48 min(s), 07 sec(s) ago)
(RTTNews) - A report released by the Labor Department on Thursday showed first-time claims for U.S ...Full Story»

Indonesia Cuts Interest Rates For First Time In Nearly 2 Years (11 hr(s), 06 min(s), 07 sec(s) ago)
(RTTNews) - Indonesia's central bank cut its key interest rate for the first time in nearly tw ...Full Story»

Philly Fed Index Jumps Much More Than Expected In July (11 hr(s), 35 min(s), 07 sec(s) ago)
(RTTNews) - After reporting nearly stagnant Philadelphia-area manufacturing activity in the previo ...Full Story»

U.S. Weekly Jobless Claims Inch Up To 216,000 (11 hr(s), 40 min(s), 07 sec(s) ago)
(RTTNews) - A report released by the Labor Department on Thursday showed first-time claims for U.S ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Japan Inflation Data Due On Friday

07/18/2019 - 17:59 PM (RTTNews)
(RTTNews) - Japan will on Friday release June numbers for nationwide consumer prices, highlighting ...Full Story>>

U.S. Leading Economic Index Unexpectedly Drops 0.3% In June

07/18/2019 - 10:44 AM (RTTNews)
(RTTNews) - Reflecting weaknesses in new orders for manufacturing, housing permits, and unemployme ...Full Story>>

South Africa CB Cuts Interest Rate, Growth Forecast

07/18/2019 - 10:25 AM (RTTNews)
(RTTNews) - South Africa's central bank cut its key interest rate on Thursday and slashed its ...Full Story>>

Philadelphia Manufacturing Shows Substantial Reacceleration In July

07/18/2019 - 09:31 AM (RTTNews)
(RTTNews) - After reporting nearly stagnant Philadelphia-area manufacturing activity in the previo ...Full Story>>

U.S. Weekly Jobless Claims Rise In Line With Estimates

07/18/2019 - 09:29 AM (RTTNews)
(RTTNews) - A report released by the Labor Department on Thursday showed first-time claims for U.S ...Full Story>>
Copyright © 2019. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.