In today’s Comment we will discuss two things ECB: ECB-speak on the odds of a 75bps hike next week; and ECB-speak suggesting remuneration of bank reserves could be overhauled. Starting with the former, on August 19 we note that we are witnessing the dawn of a new era in ECB-speak. With the ECB having ditched forward guidance, we wrote that we expect ECB-speakers to become unusually talkative on their preferences for monetary policy. Luckily, we were absolutely not disappointed. At Jackson Hole last week we literally got a barrage on Governing Council members preferences for the of the rate hike increment next week. The cacophony of ECB-speak continued in full force this week. It turns out that most ECB-speakers are of the hawkish variety, with a clear preference for a 75bps hike next week. We (like consensus) had penciled in a 50bps hike. So, let’s go over a little bit of ECB-speak.

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