The European Central Bank has expanded its monetary policy stance considerably. Despite the expansion of its policy, the ECB has disappointed financial markets as it had promised an even stronger expansion.
The ECB is trying to purchase an insurance with its decision. Uncertainty about inflation and growth continues to be high and the ECB is unsure whether its current measures are sufficient to achieve its mandate of price stability. With this decision the ECB retains significant room for a further expansion of its monetary policy in the future.