ECB Cuts Three Main Interest Rates, Expands QE

The video discusses the European Central Bank's (ECB) unexpected decision to cut its main refinancing rate to 0% and its deposit rate by 10 basis points. It also covers the ECB's expansion of its quantitative easing (QE) program to €80 billion a month, including non-bank corporate bonds. The video analyzes the market's reaction to these measures and questions whether they will be sufficient to stabilize the broader markets.

What was the unexpected change made by the ECB to the main refinancing rate?

• Decreased to 0%

• Increased to 0.25%

• Decreased to 0.05%

• Increased to 0.10%

By how many basis points was the ECB's deposit rate cut?

• 5 basis points

• 10 basis points

• 15 basis points

• 20 basis points

What is the new monthly target for the ECB's QE program?

• €70 billion

• €80 billion

• €60 billion

• €75 billion

Which new type of asset did the ECB include in its QE program?

• Real estate

• Non-bank corporate bonds

• Government bonds

• Cryptocurrencies

What was the market's initial reaction to the ECB's announcement?

• The euro depreciated by 1%

• Stock markets remained unchanged

• Bond yields increased

• The euro appreciated by 1%