In this opinion piece, Mohamed El-Erian offers his view on what the ECB is likely to announce following its monthly policy meeting Thursday. In El-Erian’s view, the ECB is likely to offer several bold and even unprecedented steps, potentially including negative deposit rates. However, the overall theme of the piece is that monetary policy alone will have a limited impact on inflationary expectations and key drivers of economic growth given continuing structural and competitive impediments that plague the Eurozone. As a result, the ECB decision may have a surprisingly muted impact on financial markets beyond the short-term.
How Bold Can the ECB Be?
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