Article summary
The International Capital Market Association (ICMA) has written to the European Central Bank (ECB) showing industry concerns about Eurozone repo and money market’s current conditions and the risk that rising dysfunction in the market could jeopardise the transmission of monetary policy. The letter highlights several observations relating to pricing dislocations where it is currently indicated that the upcoming 2022 ‘turn’ could be particularly challenging. The letter also acknowledges policy initiatives adopted by other central banks with a view to enhance market stability and resilience. ICMA welcomes further discussions on its concerns and policy suggestions with ECB.
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