Simon Murray, economist at Westpac, explains that the March ECB policy meeting marked a significant dovish shift in the policy stance as in March they have factored in weakness persisting through the first half of 2019.

Key Quotes

“All up, this saw large downward revisions in the economic projections, the extension of interest rate policy forward guidance to rates expected to be on hold at least through the end of 2019 (previously summer of 2019), and the announcement of a new Targeted Long-Term Refinancing Operations (TLTRO) package in response to the upcoming maturities.”

“New loans through TLTRO-III will start in September 2019 and end in March 2021. As with the upcoming maturing TLTRO-II, they will allow banks to borrow up to 30% of their stock of eligible loans, and will have built-in incentives to encourage banks to lend to households and businesses.”

“A major difference for TLTRO-III is that it will be for a shorter maturity of two years compared to the TLTRO-II of four years which Draghi says relates to the change in conditions (TLTRO-II was made in 2016).”

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

Gold refreshes all-time highs above $3,000 on escalating geopolitical tensions

Gold refreshes all-time highs above $3,000 on escalating geopolitical tensions

Gold price is reneweing record highs beyond $3,000 early Tuesday on intensifying geopolitical Middle East tensions. Israel resumes military operations against Hamas in Gaza after the group rejected US proposals for extending ceasefire. Further US-Iran tensions add to the latest leg up in the safe-haven Gold. 

Gold News
AUD/USD trades with caution below 0.6400 amid MiIddle East tensions

AUD/USD trades with caution below 0.6400 amid MiIddle East tensions

AUD/USD has paused its upsurge, trading with caution in Tuesday's Asian trading. Traders prefer to stay on the sidelines amid intensifying geopolitical risks in the Middle East, reducing the appeal of the higher-yielding Aussie. Meanwhile, the US Dollar finds its feet due to risk aversion. 

AUD/USD News
USD/JPY sits at two-week high near 149.50 as US Dollar finds demand

USD/JPY sits at two-week high near 149.50 as US Dollar finds demand

USD/JPY sits at two-week high near 149.50 in the Asian session on Tuesday as renewed Middle East geopolitical jitters revive the safe-haven demand for the US Dollar. However, further upside appears elusive amid divergent BoJ-Fed expectations and rising trade tensions. 

USD/JPY News
Solana price faces 50-day resistance as SOL futures debut on CME Group with $5M volume on fifth anniversary

Solana price faces 50-day resistance as SOL futures debut on CME Group with $5M volume on fifth anniversary

Solana stagnated around the $128 mark on Monday despite multiple bullish catalysts. The recent SOL unlocks by Alameda Research, ahead of FTX creditor repayments, have created a persistent bearish overhang since early March.

Read more
Five Fundamentals for the week: Fed leads central bank parade as uncertainty remains extreme

Five Fundamentals for the week: Fed leads central bank parade as uncertainty remains extreme Premium

Central bank bonanza – perhaps its is not as exciting as comments from the White House, but central banks still have sway. They have a chance to share insights about the impact of tariffs, especially when they come from the world's most powerful central bank, the Fed.  

Read more
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025