Nowotny says ECB interested in weakening euro appreciation

Nowotny says the ECB has no exchange rate target but interested in limiting euro strength.

• The BOE’s Funding for Lending has not been a great success
• ECB will make sure TLTROs are lent as intended

The euro comment had no effect but the final one is interesting. There’s talk that a TLTRO carry trade is brewing. The idea is to lend to businesses but banks could plant the money in bonds and earn the difference because the control mechanisms are weak.