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In an interview with Reuters, European Central Bank policymaker Ardo Hansson argued that tiering the ECB rate would risk “overcomplicating” the policy and added that doing that might unfairly help banks over others.

“I also see a risk of over-engineering when you make things excessively complicated,” Hansson told Reuters. “Every policy has side-effects and some side-effects can be mitigated, but if you tried to mitigate everything then it becomes tremendously complicated.”

Commenting on the TLTRO scheme, “You don’t want to simply copy-paste the previous facility because the objective reality is so much better than it was at that time.  I think they have to be a little bit less generous than they were before,” Hansson stated.