Room For a Rate Cut (Hansonn (ECB)

MARKETSFORU

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.