The ECB’s finally noticed that the Eurozone is in another recession, that austerity isn’t working at all (they’ve noticed but not actually admitted this is true), and that inflation continues to be too low.
So a cut in interest rates, not to zero, but from 0.75 to 0.50%…
Alas, what’s also needed, namely a reorganization of the banking system, a much higher inflation target, the end of austerity, large scale fiscal stimulus, and a clear assumption of the lender of last resort role remain off the table.
Until these things happen, Euroland will limp along, with all eyes on whether the Fourth Reich will win reelection in the fall.
Gorilla says: “Even idiots occasionally are correct!”