ECB TURNS INTO EASING MODE AS THE MACRO OUTLOOK BECAME CLOUDED

At today’s Governing Council meeting, the ECB surprised markets by adopting a series of supportive monetary policy measures: Key rates will not be altered at least until year-end 2019 (from “through summer 2019” before), a series of new TLTROs was announced and the fixed-rate full allotment procedure was extended until at least March 2021.

Highlights:

  • The ECB revised its macro outlook significantly down and even continues to see the activity risks on the downside.
  • At today’s meeting the ECB stepped up its forward guidance. It now expects rates to remain at current levels “at least through the end of 2019”.
  • It also announced a series of seven new quarterly TLTROs starting in September with 2Y maturity but as less favourable conditions than for the last TLTROs.
  • Today’s ECB decisions are a moderate positive for equities as well as credits and will dampen the rise in core government bond yields in 2019.

Download the full publication below

ECB TURNS INTO EASING MODE AS THE MACRO OUTLOOK BECAME CLOUDED

RELATED INSIGHTS

COVID-19 FACTS & FIGURES
The World Bank is launching a $4 billion financing platform aimed at boosting the production and supply of critical healthcare products in developing countries.
GLOBAL VIEW – ENJOY SUMMER WHILE IT LASTS
As lockdowns have been lifted and global activity rebounded from the Q2 nadir, hopes of a strong recovery have helped risk assets advance further over July.
Generali Investments among preferred asset managers brands in Europe
We are pleased to share with you the outcome of the first survey on “Preferred Asset Management Firms by European fund selectors” run by Cerulli Associates, in which Generali Investments ranked #11.