Further comments by Nowotny

  • If lending weakens, special measures could make sense
  • No conclusion yet on TLTROs
  • If slowdown is driven by one-off factors, TLTROs may not be needed

For the time being, expect any decision on TLTROs to only come after the March meeting for the ECB but look out for any discussions on the matter in two weeks' time. Though I wouldn't be holding my breath expecting a significant change to the current 'wait-and-see' stance.