The European Central Bank member Hansson indirectly hinted at a possibility of a deposit rate cut today by stating that the bank has a bit more space on a deposit rate cut.
- The policymaker did state that there is no need for more easing right now.
- Deposit rate cut would undermine the concept of forward guidance
- There’s as much good news as bad news
- He doesn’t currently think ECB should act in December
The policymaker underlined that there is no need for more easing right now. The euro rises after his comments.