ECB delivers bold measures but sees the ball primarily in the field of fiscal policy
Today the ECB delivered a comprehensive policy package consisting of additional LTROs, TLTRO III targeting SMEs, a temporary increase of QE by cumulatively € 120 bn skewed towards CSPP until year-end and some regulatory easing for banks. It refrained from cutting the deposit rate.
- Today the ECB delivered a comprehensive policy package consisting of additional LTROs,
TLTRO III targeting SMEs, a temporary increase of QE by cumulatively € 120 bn skewed
towards CSPP until year-end and some regulatory easing for banks. It refrained from cutting
the deposit rate.
- The Covid-19 shock is seen as temporary and monetary policy makers look for a V-shaped
development, while seeing the risks clearly tilted to the downside.
- The Governing Council, however, sees the ball for supporting measures in the field of
governments and urged for “ambitious and coordinated fiscal policy response”.
- Looking ahead, only in case of a longer lasting crisis the ECB would probably think about
additional policy measures.
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ECB DELIVERS BOLD MEASURES BUT SEES THE BALL PRIMARILY IN THE FIELD OF FISCAL POLICY
CHINA’S RECOVERY CONTINUED BUT A BIT SOFTER THAN EXPECTED
China's economic recovery continued in Q3 2020, although a bit softer than expected. Real GDP growth rose to 4.9% yoy, slightly below the Reuters consensus expectation of 5.2% yoy, but still a substantial upturn from the 3.2% yoy in Q2. On a quarterly base, growth dynamics softened to 2.7% qoq, after 11.7% qoq and -10% qoq in the two previous quarters.
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