Jun
17

ECB Loan Program Eclipsed by QE Seen Pointing to Credit Revival

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The European Central Bank will get more evidence on Thursday that lenders are stepping up their support of the euro area’s economic recovery.

At 11:15 a.m. in Frankfurt, the ECB will announce the results of the fourth round of its program for giving banks cheap funding based on their lending to companies and households. Financial institutions will probably take up 75 billion euros ($85 billion), according to the median of 22 estimates in a Bloomberg survey of analysts. Predictions ranged from 20 billion euros to 160 billion euros.

The Targeted Longer-Term Refinancing Operations were announced a year ago by ECB President Mario Draghi as part of a package to boost the economy and so revive inflation. While they had little initial impact and are now being dwarfed by quantitative easing, the TLTROs still provide a signal of banks readiness to back the regional upswing with new loans…

ECB Loan Program Eclipsed by QE Seen Pointing to Credit Revival

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