IEV - ECB Review: Loose Yield Curve Control

• The December 2020 meeting of the European Central Bank focused once again on asset purchases and generous liquidity provisions to the financial sector instead of lowering policy rates further, in line with our longstanding view that the ECB is near the effective lower bound on the deposit facility rate.
• The ECB unveiled a package of monetary policy measures broadly in line with market expectations.
• A fresh round of quarterly staff macroeconomic projections has been released, and the inflation trajectory over the next three years remains bleak.

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