ECB left interest rates unchanged today. That is, main refinancing rate is held at 0.00%, marginal lending facility rate at 0.25%, deposit facility rate at -0.50%. In response to coronavirus pandemic, ECB decided a package of measures. There will be additional longer-term refinancing operations (LTROs) to provide liquidity support. In TLTROIII, considerably more favorable terms will be applied during the period from June 2020 to June 2021. Also, a temporary envelop of additional net asset purchases of EUR 120B will be added until the end of the year. Full statement here.
EUR/CHF recovers mildly but there is no following through buying. Markets will turn focus to President Christine Lagarde’s press conference.
