…March is the obvious time to announce details of the replacement for TLTRO2. This presents an opportunity to consider the width of the standing facilities corridor. The ECB could adjust the deposit facilities rate upward, arguing for the structural benefit for banking, but use the TLTRO2 replacement to lean against a tightening of financial conditions 20. One challenge with this scenario is that it implies the ECB breaches its current forward guidance that all policy rates will remain on hold…