ECB Minimum Reserve Debate Raises Liquidity Concerns – ING

ING strategists Benjamin Schroeder and Michiel Tukker have highlighted that a potential increase in the Minimum Reserve Requirement (MRR) by the European Central Bank could tighten liquidity in the Eurozone.

Such a move would reduce the size of the ECB's balance sheet, further constraining the supply of central bank reserves. The ongoing debate over minimum reserve requirements is seen as a key factor for near-term market liquidity conditions.