ECB Restarts QE, Lowers Deposit Facility Rate to -0.5%

The video discusses the European Central Bank's decision to cut the deposit rate by 10 basis points, which was expected by the market. It also covers the announcement of quantitative easing (QE) to buy €20 billion of debt monthly starting November 1st, which was less than expected. Matt Miller provides analysis on the implications of these decisions, including the impact on banks and the market's expectations.

What was the market's expectation for the basis point cut, and what was the actual decision?

• 10 basis points expected, 20 basis points cut

• 10 basis points expected, 30 basis points cut

• 20 basis points expected, 10 basis points cut

• 30 basis points expected, 10 basis points cut

What is the monthly amount of debt the ECB plans to purchase starting November 1st?

• €10 billion

• €20 billion

• €30 billion

• €40 billion

How does the ECB's QE commitment compare to the Bloomberg estimate?

• It is less than the Bloomberg estimate

• It is double the Bloomberg estimate

• It matches the Bloomberg estimate

• It is more than the Bloomberg estimate

What is the impact of the negative deposit rate on European banks?

• It increases their profits

• It has no effect

• It creates a financial drag

• It reduces their reserves

What is the estimated annual financial drag on European banks due to the negative deposit rate?

• €5 billion

• €12 billion

• €7 billion

• €10 billion