Would a Brexit trigger the ECB’s OMTs?

Today’s ruling by the German constitutional court leaves the ECB free to implement its long-awaited OMT programme, if deemed necessary. And a possible trigger for OMTs – Brexit – might be just a few days away. We think the most likely ECB response to a Brexit would be rate cuts and more QE. But if markets in the periphery were hit substantially worse than those in the core, the ECB may use OMTs.

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