ECB's Villeroy: We are making unlimited liquidity available to banks so they can lend
The European Central Bank (ECB) Governing Council member Villeroy said on Friday, “we are making unlimited liquidity available to banks so they can lend.”
He added that the ECB package is coherent with the current economic situation.
Further comments
We see market volatility but we are guided by economic conditions.
Economic shock is severe, but temporary.
Can distance ourselves from capital key to buy more of some countries debt if needed.
Shall remain extremely mobilised for the coming days.
In its March monetary policy meeting, “the ECB left the deposit rate unchanged at -0.50%, while keeping the refi rate at 0.00%. The existing asset purchase programme will temporarily be expanded. An additional EUR 120bn in purchases will be conducted through the end of the year. These purchases will be mainly aimed at the private sector. Additionally, the ECB announced very cheap LTRO loans through June, as well as an easing of the TLTRO-III conditions and costs for the period June 2020 to June 2021,” FXStreet’s Analyst Ross Burland noted.
EUR/USD back below 1.1200
EUR/USD pares gains and trades near 1.1195 amid a slight improvement in the risk sentiment, having jumped to a daily high of 1.1221 in the Asian trades.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
