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11 Dec 2014
Second Round of TLTRO Hinders ECB’s Expansion Plans
FXStreet (Mumbai) - The second round of targeted long-term refinancing operations (TLTROs) failed to bring any positive surprises for ECB officials, further complicating their balance sheet expansion target.
According to the released data banks took up 129.4 billion euros in loans, more than they did in September but well below market expectations.
In the first round, the allotted amount of 82.6 billion euros was rather disappointing, as it was below the expected range of between 100 billion euros and 300 billion euros.
Markets opined that the second round of TLTRO may not be enough to expand the balance sheet by the intended 1 trillion euros hampering European Central Bank (ECB) plans to eventually start full-blown quantitative easing.
According to the released data banks took up 129.4 billion euros in loans, more than they did in September but well below market expectations.
In the first round, the allotted amount of 82.6 billion euros was rather disappointing, as it was below the expected range of between 100 billion euros and 300 billion euros.
Markets opined that the second round of TLTRO may not be enough to expand the balance sheet by the intended 1 trillion euros hampering European Central Bank (ECB) plans to eventually start full-blown quantitative easing.