A major step for the ECB

Summary

Last Thursday, the ECB maintained interest rates, but has prepared the ground for changes in September in response to the fact that inflation and its expectations have been below target for a long time.

Key points

• Key points:
• With interest rates in negative (-0.40%) and with a fattened balance after the purchase of assets of EUR 2.5 trillion, the ECB is inclined to step up the little margin that seems to remain on this side.
• An additional cut in interest rates will most likely be made in September, which will be accompanied by some kind of measure to mitigate some of the adverse effects of negative rates, which is already a sign that this situation will endure for a while.

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