ECB Chief Economist Peter Praet indicated that a new round of Targeted Long-Term Refinancing Operation will be considered in the March meeting. He noted that banks suffering from weak profitability might cut credit to the real economy due to recent slowdown. And new TLTRO could be a handy insurance policy should uncertainty feeds into businesses.
He said that “the discussion will come very soon in the Governing Council,” but “it doesn’t mean we’ll take decisions … at that time.” He added that the parameters of any new loans will involve complicated discussions as ” it depends on the amount of stimulus you want to bring or not to bring.
