ECB Could Announce Another Round of TLTROs

The European Central Bank could consider renewing its offer of free long-term liquidity to lenders though it shouldn’t turn it into a permanent measure, a Governing Council member said.

Targeted longer-term refinancing operations are “a very practical and very helpful instrument; I would be very flexible regarding that instrument in the future,” Bank of Lithuania Governor Vitas Vasiliauskas said in a Bloomberg interview in Vilnius on Tuesday. “I still think that TLTROs are not an ordinary monetary policy, that they remain an emergency tool.”

The ECB is scheduled to offer the last of its long-term loans to banks next month, raising the prospect that it might announce fresh operations to smooth its monetary policy in a year of heightened political risk. The measure, while less well-known than negative interest rates and the 2.28 trillion-euro ($2.4 trillion) bond-buying program, has been a key plank of the institution’s stimulus efforts to reinvigorate the euro-area economy.


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Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

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