- Says ways to channel ECB liquidity to small firms, households worth considering.
- Full impact of three-year liquidity operations seen only at recovery.
- ECB will not allow higher yields due to Euro break-up fears, Euro is irreversible.
- There is no specific need for concerted global central bank intervention.
- Deposits in Greek, Spanish banks currently stable, ECB not considering steps to to stop deposit flight.
Market taking this with a grain of salt , euro still trading around 1.2400.
