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 is the current status of the ECB's deposit rate?

• It has been increased by 40 basis points.

• It remains unchanged at negative 40 basis points.

• It has been decreased by 40 basis points.

• It is now positive 40 basis points.

What unexpected announcement did the ECB make regarding loans?

• They will stop issuing new loans.

• They will increase the interest rate on existing loans.

• They will start two-year long-term loans in September.

• They will start short-term loans in June.

How did the market react to the ECB's announcements?

• The stock market crashed.

• The euro-dollar exchange rate dropped.

• The bond market saw a decline.

• The euro-dollar exchange rate increased.

What did Bloomberg's Matt Miller report about the ECB's economic forecasts?

• The ECB did not provide any forecasts.

• The ECB expects stable growth and inflation.

• The ECB expects lower growth and inflation.

• The ECB expects higher growth and inflation.

What is the significance of the euro falling below the 113 level?

• It shows an increase in euro value.

• It suggests a stable euro-dollar exchange rate.

• It is the first time in almost a month.

• It indicates a strengthening of the euro.