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RGE’s David Nowakowski on CNBC: ECB Must Implement Creative Policy

Today, David Nowakowski, RGE Director of Fixed Income and Credit Strategy, told CNBC that, given the current low policy rates in the eurozone, a rate cut by the ECB does not make a difference, noting that although the repo rate is at 75 bps, the interbank rates are much lower after LTROs earlier in 2012, and after cutting deposit rates to zero. He argues that the ECB must do implement more creative measures, with QE unavailable, such as communications policy. “But,” he notes, “I don’t think they’re there yet, after today.” He argues that the ECB must not fall behind the curve.

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