The firm is of the view that the ECB will opt for a 20 bps rate cut in its deposit facility with tiering, enhanced forward guidance and a return to QE in September.
Adding that asset purchases will likely include corporate bonds and sovereign debt within the existing constraints, combined with a signal that the ECB could increase QE headroom by raising the issuer limit. This was an issue talked about last week here.
www.forexlive.com/news/!/ecb-may-cut-rates-by-20-bps-restart-qe-in-september-goldman-sachs-20190701
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