ECB’s Nowotny Says Europe Will Avoid Cliff

The European Central Bank will provide more liquidity to avoid a “cliff” effect once long-term refinancing operations (LTROs) – the bank’s cheap loans to euro zone banks – come to an end, Governing Council member Ewald Nowotny told CNBC.

“Concerning the liquidity, the main challenge is of course that a large part of our liquidity provision is via the LTRO, the long-term liquidity provision,” Nowotny told CNBC in an interview.

“What we want to avoid of course is that at the ending of this program we have some sort of cliff effect. There are several ways to avoid this, but it’s quite clear that we are careful not to have some kind of sudden effects. But this is something that will come.”

via CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at Visit to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

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