ECB have delivered about as dovish an update as could expected following their latest monetary policy decision. The bank has stated its intention to keep rates on hold at record lows until at least the end of the year, as well as making a fresh offer of funding for the bloc’s banks - known as Targeted Long Term Refinancing Operations or TLTROs.
This is now the third time the central bank have chosen to implement this measure, which in effect is an injection of liquidity into the banking sector, in an effort to provide further stimulus and the news has seen some immediate reaction to the upside for the region’s banking stocks.
The Eurozone economy has stalled of late with a series of data points pointing to a marked slowdown, and the ECB have sought to take a proactive approach to support the region, going further than many had forecast heading into the meeting.
The euro has dropped in the immediate reaction and the markets now await the following press conference with President Draghi to see if he reaffirms what on the face of it looks like a clear dovish shift.