BOF gov and ECB governing council member Villeroy out on Bloomberg 23 Sept

  • but there are limits
  • there is a lower bound but we don't know exactly where

Thanks for that insight and forward guidance.

  • in the short term rates will remain low and yield curve will stay rather flat
  • pace of rate rise will depend on inflation pick up
  • we have investment dearth rather than savings glut
  • strong TLTRO take-up shows its strength
  • ECB policy was net positive for bank profitability

EURUSD and EURGBP just running into a few sellers after a strong start to the session.

ECB's Villeroy - Neg rates are useful