…of excess liquidity. It must be withdrawn not too early, but not too late, he says. No further policy steps by the ECB are needed, he says.
He sees very strong demand at tomorrow’s ECB 1-year tender with a drop in short-term liquidity demand as banks look to fund themselves at 1.0% for the next year.
Also crossing the wires was improved Belgian business sentiment. The index rose to -23.6 from -27.6. EUR/USD ran up to 1.4025 before stalling.
