FXStreet (Guatemala) - Analysts at BNP Paribas explained the benefits of a fresh reduction in rates in the EZ that derive first and foremost from the euro’s exchange rate. Key Quotes: "Since it has been widely anticipated by the market, it has already triggered a hefty decline in the euro." "The effects on lending are not as clear-cut. While lending should continue to gain momentum in the eurozone, the pick-up will come more from measures supporting lending (LTRO) and quantitative easing than from a cut in the DFR." "As to long term rates, their evolution will mostly depend on non conventional monetary tools, namely forward guidance and QE." "The efficacy of monetary policy will also depend crucially on the ECB’s ability to raise inflation expectations – an objective it has yet to achieve." For more information, read our latest forex news.