According to Reuters
- Some policymakers favour hiking only the deposit rate at first
- Door is open for new TLTROs
- Suggestion is to make it permanent and at a floating rate
The euro is rising a little on the headline here but is also dragged higher as the pound is extending gains on the day against the rest of the major bloc. The headlines sound positive as it means that policymakers at the central bank are debating ways to withdraw stimulus as we approach next year.
However, it has to be said that they remain of the view that it will only come "through the summer of 2019". And with the economy progressing so sluggishly, in my view it's a bit premature to be talking about this right now; not when officials can say with any certainty that there won't be troubling times for economic growth in the region in 2019.
Either way, EUR/USD is making its way higher to 1.1353 now with EUR/JPY also rising to a high of 128.27 on the day.
