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5 Jun 2014
Welcome to ECB day, expect a rate cut - Societe Generale
FXStreet (London) - Kit Juckes, Global Head of Currency Strategy at Societe Generale is expecting a rate cut at todays ECB meet.
Key Quotes
"Welcome to ECB day. We expect a rate cut (Refi to 0.1%, Deposit Facility to -0.1%) liquidity injection (end of SMP sterilisation and targeted LTRO) and a modest (Eur 300bn) private sector asset buying programme."
"This is more aggressive than our understanding of the consensus view. Rate cuts are fully priced in, but there is no widespread agreement about liquidity measures."
"Markets are however, pricing in the possibility that the ECB President delivers a risk-friendly message successfully. The reaction to failure to cut rates at all would be bigger than even the announcement a large-scale asset purchase programme (EUR 1trn plus)."
Key Quotes
"Welcome to ECB day. We expect a rate cut (Refi to 0.1%, Deposit Facility to -0.1%) liquidity injection (end of SMP sterilisation and targeted LTRO) and a modest (Eur 300bn) private sector asset buying programme."
"This is more aggressive than our understanding of the consensus view. Rate cuts are fully priced in, but there is no widespread agreement about liquidity measures."
"Markets are however, pricing in the possibility that the ECB President delivers a risk-friendly message successfully. The reaction to failure to cut rates at all would be bigger than even the announcement a large-scale asset purchase programme (EUR 1trn plus)."