BNPP Sees ECB Refi Rate Cut To 0.5% By End-3Q

BNP Paribas expects the ECB refi rate to be cut to a new low of 0.5% by the end of 3Q. Adds that predicting the timing of any rate cuts is difficult due to the high level of uncertainty on Greece in particular. "The most likely scenario, in our view, is a refi rate cut of 25bps in June, in tandem with the new ECB projections, with another to follow in 3Q," notes BNPP. Says some factors favor a later move, such as the ECB keeping its "limited powder dry", although in the event of a major escalation in market tensions, "a 50bps cut is feasible."

BNPP Sees ECB Refi Rate Cut To 0.5% By End-3Q

Find us on Google+