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1 Oct 2013
Flash: ECB--Much to Discuss, but Little Action -BBH
FXstreet.com (London) - Research teams at BBH said the European Central Bank meets tomorrow, rather than Thursday due to the national holiday in Germany. “There is practically no chance that the ECB changes rates or its forward guidance. Nevertheless, there is much that officials have to discuss”.
Key Quotes:
“First, the September manufacturing PMI was the third consecutive monthly reading above the 50 boom/bust level”.
“Second, disinflationary forces are tightening their grip”.
“Third, with banks continuing to pay down their LTRO borrowings, the excess liquidity is approaching the 200 bln euro threshold”.
“Fourth, it is too early to consider another LTRO”.
“Fifth, the ECB appears to be slowly moving toward releasing some report of its discussions”.
“Sixth, while US banks have returned to profitability, European banks have lost an estimated 80 bln euros over the past two years”.
Key Quotes:
“First, the September manufacturing PMI was the third consecutive monthly reading above the 50 boom/bust level”.
“Second, disinflationary forces are tightening their grip”.
“Third, with banks continuing to pay down their LTRO borrowings, the excess liquidity is approaching the 200 bln euro threshold”.
“Fourth, it is too early to consider another LTRO”.
“Fifth, the ECB appears to be slowly moving toward releasing some report of its discussions”.
“Sixth, while US banks have returned to profitability, European banks have lost an estimated 80 bln euros over the past two years”.