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Too little too late?
The last time Draghi promised to do whatever it takes (the summer of 2012), he did nothing, but brought about the biggest market reaction ever for a non-event (the decline in peripheral yields). This time, although he never made the same promise, he built up expectations to such an extent that the market impact has been relatively muted, certainly when compared back to 2012 or the reaction to the Bank of Japan’s bazooka early last year. Leaving aside the finer details, there were four aspects to the policy changes today. As well as rates, the ECB announced targeted longer term repo operations, the total banks are ... (full story)