ECB Will Offer More Cheap Loans to Banks, Keeps Rates on Hold

The video discusses the ECB's decision to keep the deposit rate unchanged at negative 40 basis points, despite economists' suggestions to raise it. The ECB announced new targeted, longer-term loans, surprising the market with the timing and details. The ECB also pushed back rate hike expectations, keeping rates on hold through 2019. The market reacted with a drop in the euro and a rally in the bond market. Expert commentary highlights the unexpected nature of the announcements and their impact on market dynamics.

What are the expectations regarding the euro's trading range?

What do economists predict about the future of bond yields?