Krautzberger: ECB Has Room to Continue Buying Bonds

The transcript discusses the European Central Bank's (ECB) strategies regarding debt purchasing and yield curve management. It compares the ECB's actions with those of the Bank of England and Japan, highlighting the limits of negative deposit rates and flat yield curves. The discussion also covers potential policy changes that could impact the market, particularly in steepening the yield curve, which would benefit long-term investors like insurance companies and pension funds. The role of national central banks, such as the Bundesbank, in influencing bond markets is also examined.

What are the potential limits on negative deposit rates according to the text?

How does the ECB's approach to the yield curve differ from that of the Bank of Japan?

What implications does the ECB's current policy have for long-term investors like insurance companies?

What changes could the ECB implement to steepen the yield curve?

In what way could relaxing the rule on purchasing bonds affect the market?