ECB’s Meeting: More Liquidity With Conditions

On Thursday there will be no interest rate increase nor decrease, because the hottest issue on the ECB’s table is whether to launch a third LTRO. “The disappointing recent macroeconomic data, with low rates of inflation in Europe, reduce the need for new injections of liquidity from the ECB as in December 2011 and February 2012, or those made by the American Fed, the BoE in Great Britain and the Bank of Japan over the past years,” TREA Capital Partners Fund Manager Miguel Ángel Villoslada believes.

“Lower estimates in the CPI and GDP would support new stimuli, but we believe that this time, the open cash bar will take place, yet conditioned to that banks applying for these loans secured these resources for the granting of credit to businesses and families. This is what Europe needs to begin a true recovery and boost domestic consumption, and must get their banks in peripheral countries to increase the credit to families and businesses even as they are in the process of their own deleveraging,” Villoslada states.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

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