Should Investors Brace For an Increase in ECB QE?

The transcript discusses expectations for a 20 basis point rate cut and an increase in the asset purchase program by the ECB. It addresses the scarcity of assets and potential solutions, such as delegating purchases to national central banks. The focus is on the repo rate and expected volatility around announcements. Inflation expectations and eurozone growth are analyzed, highlighting the need for structural reforms. The effectiveness of negative interest rates as a policy tool is debated, with comparisons to the Bank of Japan's approach.

What is the expected change in the deposit rate discussed in the video?

• 20 basis points cut

• 10 basis points increase

• 30 basis points cut

• No change

What is one proposed solution to the scarcity of assets for the ECB to purchase?

• Delegate purchases to national central banks

• Increase interest rates

• Buy only government bonds

• Reduce the asset purchase program

What is the main focus of the ECB's announcement according to the video?

• Inflation rate

• Unemployment rate

• Repo rate

• Exchange rate

What has been the trend in inflation expectations despite eurozone growth?

• Inflation expectations have been declining

• Inflation expectations have been volatile

• Inflation expectations have been increasing

• Inflation expectations have been stable

What is the perceived effectiveness of negative interest rates as discussed in the video?

• They are ineffective

• They are somewhat effective

• They are only effective in the short term

• They are an effective policy tool