Banks (especially those of the core countries) continue the repayment of liquidity to the ECB at a fairly high pace. We expect the pace to decelerate slightly. But if the pace continues, the liquidity surplus will fall to EUR 200bn already by July. If, on the other hand, the pace is reduced by 50%, the level will not be reached until October. So far, the money-market reaction has been modest, and the money-market curve remains quite flat. The reason for this is the new soft rhetoric from the
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Euro zone: Declining ECB liquidity – modest interest-rate