ECB Needs to Act Aggressively Says MUFG's Halpenny

The transcript discusses the European Central Bank's (ECB) recent actions and market reactions. Concerns were raised about the ECB's delay in acting despite a deteriorating outlook. The decision-making process, involving consensus among 25 members, was highlighted as a reason for the delay. Market expectations were affected by the lack of consensus on measures, leading to curtailed expectations. The discussion also covers potential future actions by the ECB, including a tiered deposit system and changes in inflation targets, emphasizing the need for aggressive measures to reassure markets.

What expectations were set regarding the announcement of a deposit system?

How might the abandonment of defined inflation targets affect monetary policy?