Short rant on Draghi

The ECB president announced €80 billion in new asset purchases a month, up from €60 billion, and a cut in its benchmark interest rates to 0% along with a decrease on overnight deposit rates of banks to -0.04%.

This was more loosening than many experts had expected. Then suddenly Mario Draghi announced that they were done making borrowing cheaper. This is surprising as they slashed inflation expectations for 2016 from 1% to 0.1% and growth projections for the same year was slashed to 1.4% from 1.7%.

Why reduce inflation expectations by announcing that you’re done with the cutting? Anyway, I had short rant on twitter about this.

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Jerome Kuseh

Accountant | Economist-in-Training | Finance Blogger
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