Reuters sources on the ECB debate
- Policymakers will calibrate loans based on growth figures
- New proposed premium was 25 bps above man refi rate but governors pushed back and said it was too high
- TLTRO rate not seen going below zero, although discussions continue
The way I understand it, there will be incentives that lower the rates when certain lending targets are met. They don't want the banks to hoard the cheap loans but want them to filter into the economy.
