ECB Has Done as Much as it Can Do, Says UBP’s Kinsella

The transcript discusses the European Central Bank's (ECB) current monetary policy, highlighting the negative impact of rate cuts on the banking system and the need for fiscal stimulus from European governments, particularly Germany. It compares the ECB's situation to the Federal Reserve's actions in 1998, suggesting that the ECB has reached the limits of its monetary policy. The focus is now on maintaining low rates to encourage government borrowing, but without fiscal policy support, the ECB's options are limited.

What is the speaker's view on the effectiveness of further deposit rate cuts?

What challenges does the ECB face in encouraging governments to borrow more?