ECB's TLTRO Program Could Boost Balance Sheet By €1.5 trillion: JPMorgan

As negative rates are losing some of their initial appeal, the ECB’s recent policy shift emphasis to TLTRO (Targeted Longer-term Refinancing Operations) with a sizable package will facilitate fixed-rate lending for four years at 0% or potentially as low as -0.4%. This could boost the ECB’s balance sheet by an additional €1.5 trillion, believe JP Morgan analysts. Bruce Kasman and colleagues argue in their March 11 research note titled “Global Data Watch” that the fog of uncertainty over the global economy is lifting. ECB’s TLTRO program: JPM’s DM outlook shifted to neutral or positive from downside Kasman and team point out…