ECB hiked charges by one other 75 bp – as anticipated. The financial institution flags additional tightening forward however dropped the reference on “subsequent a number of conferences”. That backs the view that the ECB is ready on one other hike in December however will then take account and the battle between hawks and doves will grow to be extra heated, as Lagarde flags the shift to choices to be taken at a meeting-by-meeting foundation. The ECB determined to alter the phrases of the TLTRO loans in spite of everything, with the speed from November 23 to maturity the typical key charge. On the similar time, the financial institution supplied extra alternatives for early compensation of the loans. The remuneration of minimal reserves will probably be on the deposit charge now. EURUSD is holding simply above parity for now, as markets digest the preliminary announcement and anticipate Lagarde’s presser.
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Stuart Cowell
Head Market Analyst
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