Tag: ECB

ECB Set to Hand Banks More Ultra-Cheap Cash to Boost Lending

The European Central Bank headquarters in Frankfurt.

Photographer: Alex Kraus/Bloomberg

Euro-zone banks are gearing up for another dose of ultra-cheap funding as the European Central Bank gives them every possible incentive to lend to the pandemic-stricken economy.

Thursday’s installment of targeted loans, known as TLTROs, will give banks long-term loans for an interest rate as low as minus 1% — meaning the ECB pays them to borrow — as long as they lend the cash onto companies and households.

Attractive as the offer is, banks are already well-funded after taking a record 1.3 trillion euros ($1.5 trillion) in the previous operation three months ago. Estimates this time range from 10 billion euros by Barclays Plc to 200 billion euros at NatWest Markets Plc. The result will be announced at 11:30 a.m. in Frankfurt.

Funding rates have fallen to record lows before the next round of cheap loans

“More than 100 billion euros would mean we’re in business,” said Rishi Mishra, an

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ECB Confronts Weaker Economy, Stronger Euro: Decision Day Guide

(Bloomberg) — European Central Bank President Christine Lagarde will have to walk a fine line on Thursday as she portrays a euro-area economy that’s recovering as hoped from the coronavirus pandemic yet still in need of massive support.

While new economic projections will confirm that the worst downside risks haven’t materialized, they’ll still be bleak and subject to high uncertainty. Lagarde also now has to deal with a stronger euro that could hamper the upturn.



Christine Lagarde with his mouth open: European Central Bank President Christine Lagarde Announces Rate Decision


© Bloomberg
European Central Bank President Christine Lagarde Announces Rate Decision

Christine Lagarde

Photographer: Alex Kraus/Bloomberg

Read more: ECB Forecasts Said to Show More Confidence in Economic Outlook

The Governing Council is expected to keep its 1.35 trillion euro ($1.6 trillion) emergency bond-buying program and record-low interest rates unchanged for now. But the president will be quizzed in her press conferences on market expectations for more stimulus later this year.



a screenshot of a cell phone: ECB Timeline


© Bloomberg
ECB Timeline

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