HALISTER1: BNP Expects ECB Deposit Rate to Hold at -0.4% vs Cut to -0.7%

BNP Expects ECB Deposit Rate to Hold at -0.4% vs Cut to -0.7%

(Bloomberg) -- No longer expect any further ECB deposit-rate cuts, BNP economist Ken Wattret writes in client note.
  • Had previously forecast rate would fall to -0.7% by September
  • Further reductions in the deposit rate cannot be ruled out entirely; still, ECB policy shift toward other unconventional tools suggests the probability of aggressive cuts has fallen significantly
  • NOTE: Barclays and JPMorgan said last week they no longer expect further ECB deposit-rate cuts this year, while ECB’s Praet tells Repubblica the ECB hasn’t reached the lower bound
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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2539Z GR (European Central Bank)

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Ken Wattret (BNP Paribas SA)

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