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QT effects dwarfed by influence of past rate hikes

Any impact of QT has so far been modest and swamped by the effects of higher policy rates. Asset disposals might put some upward pressure on yields in the euro-zone in the near term, but the process of balance sheet normalisation will be slow and in some economies it is nearing an end. The biggest influence on financial conditions will continue to be the lagged impact of conventional policy tightening.

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