All three policy rates cut by 10bp. More information during the press conference
So they did it.
The ECB couldn’t resist the temptation to cut all three policy rates by 10 basis points, against our house view and against the expectation of most observers. While it makes some sense to cut ahead of the first TLTRO it still looks a bit like panic. The press conference will probably also bring more information about an ABS purchase programme. Reuters discusses a programme of up to € 500 bn, but that’s only rumors for now.
Nordea