My interview with Andrea Enria, Chair of the Supervisory Board of the #ECB.
@milanofinanza
Italian:
https://t.co/xJbP3r02B5
English: https://t.co/m060HSVvDk
The lessons we draw from recent banking crises are that supervision has to be able to intervene early and effectively, and that banks have to strengthen their internal controls, Supervisory Board Chair Andrea Enria tells @MilanoFinanza. Read more https://t.co/QyQrCTLKgT
My interview with Philip Lane, chief economist and member of the executive board of the #Ecb. @milanofinanza
Italian:
https://t.co/A54fKDfRui
English: https://t.co/ELKqpNHSQp
Oggi su MF Lane (#Bce) spiega in dettaglio i fattori temporanei che stanno influenzando l' #inflazione e sottolinea che resterà contenuta nel medio termine. Anche dopo la pandemia, dice Lane, la politica monetaria dovrà assicurare una rapida convergenza verso il target Bce. #ecb
Barclays - The #PEPP will be there for as long as needed and probably for a very long time. The #ECB kept some ammunition for its next meetings (tiering, financial commercial paper and/or fallen angels in the PEPP, non-financial CPs in the loans eligible for TLTRO III).
Reactions after #ECB meeting
Morgan Stanley - The ECB surprised positively, boosting #PEPP by more than we expected. We expect one more PEPP expansion, likely in March 2021, of €400 billion, alongside an extension to end-2021.
Citi - We suspect that the 2-3 Dec meeting could be when another delay in the return of inflation to its target would likely warrant a further #PEPP extension.
Citi sees: i) an expansion and extension of the PEPP programme; ii) clarification that assets purchases under this programme will be reinvested as a matter of course; and iii) confirmation that deviation of purchases from the capital key of the ECB will continue to take place.
Berenberg: we see a 60% probability that the ECB will raise its asset purchase target, probably by €500bn. Gloomy staff projections for growth and inflation will make it easy to justify such a decision. Acting now would suit the ECB’s recent “whatever it takes” approach.