They better hope they weren’t or they didn’t do a very good job.
- ECB creating incentive for banks to lend
- ECB must wait to see impact of measures
- We can still tweak some of the key rates, not necessarily the main rate
- TLTRO must wait until Sept for logistical reasons
- Would not say QE is a bluff, QE is still on the table
- There is some froth in high yield bonds
Constancio is speaking on CNBC.
If someone says “it’s not a bluff”… it’s always a bluff.