And some thought we were only kidding that NIRP is soon going to be Europe's new best friend... Just out from Goldman: Change to our ECB call: We now expect a 25bp cut in the repo rate in July, but with the deposit facility rate left on hold Tensions in the Euro area financial system are increasing again, on the back of rising government bonds yields in Spain and Italy. This is building pressure on the ECB to act. One dimension for policy action is interest rates. We foresee a 25bp cut in the main refinancing rate in July to 0.75%, but forecast an unchanged deposit rate, implying a narrowing of the interest rate ... (full story)