The BoE’s bold moves give us some hope that the ECB will lower capital adequacy standards to finally unleash some lending on a credit-starved economy.
A tree is growing in the forest… when do you cut it down to harvest its wood? When it dies and threatens to fall on your house.
Practically speaking, no one should expect any ECB tightening at all until some time in 2022.
The ECB’s plan for ending asset purchases hinges on a questionable CPI forecast.