Analysts at Rabobank explained that the June meeting had a distinctly dovish market impact.  Key Quotes: “The main cause is the more explicit forward guidance.  Expectations have clearly been pushed to the  later  end of 2019. The 1m Eonia forward curve implies a first deposit rate hike by December 2019.” “The new guidance is still consistent with our call for a September 2019 deposit rate hike, but we admit that it skews the risks to a prolonged period of low rates. The key question is how high the ECB makes the data-dependent hurdle for a first hike. Judging by the curve, the market currently expects this threshold to be quite high, so that it may delay the hiking cycle.” “If the economic slowdown is less severe than feared and inflation picks up, there is room for some hawkish surprise if this forces the ECB to act early in 2019H2.” “The bottom line is that, as a result of this newly established link to inflation and the shift of GC members’ focus towards rates guidance, we would expect economic developments to have an increasingly pronounced effect on rates as the communicated ‘earliest hike date’ draws closer.” “Banks repaid only EUR 11bn of TLTRO-II loans. This amount is too insignificant to affect money market rates, which remain well-anchored to the ECB’s deposit rate.” “However, if repayments do pick up substantially in the coming quarters, this could put upward pressure on rates.” “We think the ECB may explore fresh (T)LTROs in the future, but we would expect these to have a tenor closer to 2 years.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next US: Inventory shortages continue to drive home prices higher – Wells Fargo FX Street 4 years Analysts at Rabobank explained that the June meeting had a distinctly dovish market impact.  Key Quotes: "The main cause is the more explicit forward guidance.  Expectations have clearly been pushed to the  later  end of 2019. The 1m Eonia forward curve implies a first deposit rate hike by December 2019." "The new guidance is still consistent with our call for a September 2019 deposit rate hike, but we admit that it skews the risks to a prolonged period of low rates. The key question is how high the ECB makes the data-dependent hurdle for a first hike. Judging by… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.