Last month's cut in interest rates has not lifted the pressure on the ECB to provide more support for the fragile economic recovery. Accordingly, President Draghi may make a more concerted effort to talk down the euro at the post-meeting press conference on 5th December. Meanwhile, the further fall in banks' excess liquidity and concerns over the possible effects of US Fed tapering could prompt the ECB to provide euro-zone banks with more long-term funds, perhaps contingent on lending commitments.
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