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ECB virus response likely to include a rate cut

The ECB will need to respond to the Covid-19 virus, which has already prompted a 50bp rate cut by the Fed, but we think it will do so on its own terms. This is likely to include a 10bp deposit rate cut and changes to the TLTROs at its scheduled meeting next week. That said, the Bank could move earlier if, for example, there are further big moves in markets.

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