4 Feb 2014
Flash: ECB rate cut ‘too little too late’? - Societe Generale
FXStreet (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that a growing number of investment banks are now looking for further easing from the ECB at Thursday's Council Meeting.
Key Quotes
"I can't help thinking that further easing now is too little, too late to make a meaningful difference. The lack of credit growth owes more to lack of demand on the one hand and pressure to shrink banks' balance sheets on the other, than the level of policy rates or whether the ECB can re-flood the system with liquidity."
"The Euro meanwhile, is holding up, reflecting new-found regional safe haven status. While a respite for CEE currencies this morning could therefore see the Euro drift a bit, it still seems preferable to remain short GBP/USD on a strategic basis, than EUR/USD."
Key Quotes
"I can't help thinking that further easing now is too little, too late to make a meaningful difference. The lack of credit growth owes more to lack of demand on the one hand and pressure to shrink banks' balance sheets on the other, than the level of policy rates or whether the ECB can re-flood the system with liquidity."
"The Euro meanwhile, is holding up, reflecting new-found regional safe haven status. While a respite for CEE currencies this morning could therefore see the Euro drift a bit, it still seems preferable to remain short GBP/USD on a strategic basis, than EUR/USD."