The ECB delivers a strong easing package

The central bank came in line with what we were expecting announcing a strong package of further accommodative measures. It enhanced the forward guidance on rates, cut the depo rate by 10bps, announced a two-tier system for bank reserves and a new open-ended asset purchase program (APP) and sweetened TLTRO-III conditions.

Key points

• Key points:
• The door remains open for further easing if needed, but the ECB makes a strong call for more active fiscal policy
• Inflation projections have been revised down over the forecast horizon. GDP growth also, but less

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