Hawkish easing

ECB easing fell short of markets’ expectations…  …but should support the ongoing recovery This is a paradox: While the ECB unveiled new easing measures this Thursday, financial and monetary conditions tightened sharply following the announcement, with, in particular, the euro rising strongly against the dollar (see chart). The negative markets’ reaction is to be seen in the light of the – admittedly - very high expectations and the subsequent disappointment: The deposit facility rate cut
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