ECB Could Offer More LTRO Loans if Needed

The European Central Bank is ready to offer banks more long-term loans to keep money-market interest rates from rising to levels which could push inflation too low, ECB President Mario Draghi said on Monday.

Speaking at the European Parliament, he also said that credit volumes are not yet showing the effect of the improvement in banks’ funding conditions, adding that the 17-country bloc’s central bank remains committed to keeping interest rates low for as long as necessary.

Draghi, who has committed the bank to taking further action if need be to keep market interest rates low, mentioned another long-term refinancing operation (LTRO) as an option to push down money market interest rates if needed.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza