A decade on from the great financial crisis, and a good 7 years since ‘whatever it takes’ and here we are again, with the ECB trying to revive a dead donkey. Its interest target hasn’t been met in years, growth has slowed to a crawl, and Germany risks recession. So, instead of charging Eurozone banks 40 basis points on their excess reserves, they will now be slapped with a 50-basis point charge – though a two-tier system will be launched where a portion will escape this levy. Re-starting the (mainly government) bond buying programme in November with €20 billion monthly, this will continue until CPI reaches its target – opening the possibility of QE forever. Economic growth forecasts have unsurprisingly been downgraded.
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