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 significance of the decline in inflation expectations since October?

What are the potential effects of negative interest rates as discussed in the text?