The latest ECB stimulus: “Quantitative Exhaustion”

11 March 2016

 

The European Central Bank last night announced sweeping new measures to stimulate the European economy but perhaps undid the impact of such a move by indicating at a later press conference that there further interest rate cuts are unlikely. The changes announced initially pleased financial markets. Westpac described the changes as “over deliver[ing] in spades”. So firstly, what are the ECB policy changes? ECB deposit rate cut from -0.30% to...

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