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(Z1) Neutral at Higher Levels

BRAZIL

/RATINGS: S&P Affirm Brazil At BB-; Outlook Stable

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GDP Eyed After Powell Added Pressure Overnight

USDCAD TECHS

Holding Onto Recent Gains

By David Thomas
     PARIS(MNI) - The European Central Bank must be attentive to the effects of
negative interest rates on banks, Bank of France Governor Francois Villeroy de
Galhau said Thursday, echoing comments the previous day by ECB President Mario
Draghi.
     Draghi's remarks, also in a speech, that the ECB should seek to preserve
the favourable effect of negative interest rates on the economy, while
mitigating side effects, has been interpreted by some as a suggestion that the
Bank could consider measures such as a tiered deposit rate.
     "Mario Draghi rightly stressed that we need to further monitor the bank
lending channel and to reflect on possible measures that we can take to preserve
the favourable implications of negative rates for the economy, while mitigating
the possible side effects," Villeroy said, in a speech at a Bank of France
Conference.
--MNI London Bureau; +44 203 865 3829; email: jason.webb@marketnews.com
[TOPICS: M$E$$$,M$F$$$,M$X$$$,MT$$$$,M$$EC$]