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 Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.