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ECB Watch: Less than meets the eye
The package was broadly in line with our earlier expectations. The main deviation was in the asset purchases. The size of EUR 20bn was on the low side and the fact that the ECB did not discuss raising the issuer limits will be a constraint on the programme going forward. The package was a response to the more protracted weakness seen in the Euro-area economy, which was also illustrated in downward revisions to staff forecasts and sought to anchor inflation expectations close to the ECB’s target. More details will follow in the October meeting, which will be Draghi’s last one. The measures taken today also leave ... (full story)