Draghi Delivers The Bazooka: ECB Announces Surprise Refi, Marginal Rate Cuts; Boosts QE To €80BN, Adds IG Bonds

Tyler Durden's picture


Well, the people wanted a "bazooka-sized" surprise from Draghi, and they got it.

Moments ago the ECB announced not only a 10 bps cut to the deposit rate expected pushing it to -40%, but also announced a 5 bp rate cut to the refinance (pushing it to 0.00%) and the marginal lending rate (now at 0.25%), and also boosted QE by €20bn to €80 billion per month, the addition of afour new targeted TLTROs each with a maturity of 4 years, but the most surprising announcement was that the ECB would also for the first time include investment grade euro-denominated bonds issued by non-bank corporations along the list of assets that are eligible for regular purchases.

In other words, Draghi finally delivered his bazooka.

Full announcement:

Monetary policy decisions


At today’s meeting the Governing Council of the ECB took the following monetary policy decisions:


(1) The interest rate on the main refinancing operations of the Eurosystem will be decreased by 5 basis points to 0.00%, starting from the operation to be settled on 16 March 2016.


(2) The interest rate on the marginal lending facility will be decreased by 5 basis points to 0.25%, with effect from 16 March 2016.


(3) The interest rate on the deposit facility will be decreased by 10 basis points to -0.40%, with effect from 16 March 2016.


(4) The monthly purchases under the asset purchase programme will be expanded to €80 billion starting in April.


(5) Investment grade euro-denominated bonds issued by non-bank corporations established in the euro area will be included in the list of assets that are eligible for regular purchases.


(6) A new series of four targeted longer-term refinancing operations (TLTRO II), each with a maturity of four years, will be launched, starting in June 2016. Borrowing conditions in these operations can be as low as the interest rate on the deposit facility.


The President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 14:30 CET today.

More from Draghi in 45 minutes.

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Thu, 03/10/2016 - 08:51 | 7294995 DavidC
DavidC's picture

More insanity.


Thu, 03/10/2016 - 08:54 | 7295009 Stackers
Stackers's picture

Excuse me while I whip this out !


Thu, 03/10/2016 - 08:58 | 7295034 Ghost of PartysOver
Ghost of PartysOver's picture

And the rabbit hole just got a whole lo deeper.

Thu, 03/10/2016 - 09:02 | 7295041 Haus-Targaryen
Haus-Targaryen's picture

Non-Bank IG debt.  

Looks like German R&D & low risk building projects are about to get a shitton of free money

Thu, 03/10/2016 - 09:03 | 7295062 Laowei Gweilo
Laowei Gweilo's picture

long German electric-V10 hybrids

Thu, 03/10/2016 - 09:05 | 7295073 Cognitive Dissonance
Cognitive Dissonance's picture

So we're saved....right?

Thu, 03/10/2016 - 09:08 | 7295095 Crisismode
Crisismode's picture



Until next week.

Then the real lid blows off.


Thu, 03/10/2016 - 09:21 | 7295151 Bokkenrijder
Bokkenrijder's picture

The crisis is definitely over now. /sarc

Thu, 03/10/2016 - 09:25 | 7295170 Stuck on Zero
Stuck on Zero's picture

Sucking more life out of the middle class to finance welfare for the rich and poor.

Thu, 03/10/2016 - 09:48 | 7295315 Cadavre
Cadavre's picture

Aaaah ... the refi, the gif that keeps on giving .. over  and over .. and over  ..  and  .. infinity.

BTW, and not too unsurizinglly, without the slightest hint or mention on lamestream, one of the Kahzarian mafia's big cheeses, Baron David De Rothschild, has been indicted, and the French police are under instructions to search all his French hidie hole mansion.

Something big is about to happen?

Thu, 03/10/2016 - 10:01 | 7295325 VinceFostersGhost
VinceFostersGhost's picture




Romeo foxtrot, shall we dance...




We have a whole fleet of helicopters.....the good news is.....they're weaponed.

Thu, 03/10/2016 - 10:05 | 7295404 French Bloke
French Bloke's picture

So is Draghi dancing in tune to the Chinese now? Sounds very like what they are proposing - slightly different route, thats all.

Thu, 03/10/2016 - 10:28 | 7295549 Pinto Currency
Pinto Currency's picture



One question, Draghi:

What is your exit strategy?

Thu, 03/10/2016 - 10:32 | 7295578 J S Bach
J S Bach's picture

The counterfeiting bash continues! Party on, Garth!

Thu, 03/10/2016 - 10:43 | 7295623 new game
new game's picture

and who said they were cornered? ha. imagine a tool box that has magic everything money, printed of course, can buy in it...

Thu, 03/10/2016 - 10:47 | 7295637 new game
new game's picture

trickle on down, ha first touch, banks, then the states, then  gov manicipalities, corps, graft unlimited, and propped up social programs, yup, party is far from over. ching ching til, well not sure if this ever really has an ending, cause what are the alternatives?

Thu, 03/10/2016 - 12:13 | 7295949 Nobody For President
Thu, 03/10/2016 - 13:01 | 7296255 eatthebanksters
eatthebanksters's picture

You can't stop gravity....this is all to slow down the onset of the eventual disastrous outcome of Central Bank manipulation.  I'm surprised he didn't add prayer into his LTRO...

Thu, 03/10/2016 - 11:06 | 7295718 quadraspleen
quadraspleen's picture

This is his exit strategy

Thu, 03/10/2016 - 14:07 | 7296472 Cadavre
Cadavre's picture

WHen it's somebody else's money covering your debt, you don't need no fuck's exit strategy - at least that what Mussolini, said just before his body became a dual use item as a public urinal and spittoon. 

Thu, 03/10/2016 - 10:29 | 7295555 pods
pods's picture

Never get off the boat. Absolutely Goddamn right.

Draghi got off the boat. Hell, he split from the whole fucking program.


Thu, 03/10/2016 - 11:10 | 7295739 PavlovPup
PavlovPup's picture

Fucking Tiger! I don't want it I don't need it you can fucking have it!


Thu, 03/10/2016 - 11:13 | 7295747 ThroxxOfVron
ThroxxOfVron's picture

Perfect storm my ass.  Lash him to the mast.

The Captain should always go down with the ship, especially one that purposefully runs it into the heart of a hurricane.

Thu, 03/10/2016 - 10:03 | 7295391 French Bloke
French Bloke's picture

He'll get off with it, just like L'Oreal... After all, I'd be surprised if he doesn't have friends in high places.

Thu, 03/10/2016 - 10:30 | 7295564 Lurk Skywatcher
Lurk Skywatcher's picture

He is the high places.

Thu, 03/10/2016 - 10:05 | 7295402 Sages wife
Sages wife's picture


Thu, 03/10/2016 - 10:01 | 7295383 PT
PT's picture

But if they don't lend money to idiots, then no-one will borrow too much and go bankrupt.  If no-one borrows too much, then they can't repossess the land and productive assets.  Now do you understand why I say the real goal is THEFT of land (and assets)?

Thu, 03/10/2016 - 10:36 | 7295516 Cadavre
Cadavre's picture

Abso-fucking-lutely. The terms of Brettonwood, the agreement that assigned the USD as the global reserve currency, required the US,upon demand, would exchange 1 oz of gold for every 35 bucks the signatories held in dere vaults upon demand. Then tricky dick said fuck gold, we be de now fading ruse of de petro dollar.

That whole thing with the Oregon BLM takeover was about preventing the EPA from privatizing public lands, to allow the CSPAN dandies to cover the FEDs balance sheet loses, by using "our lands" to cover collateral calls (since de Brettonwood gold ain't dere no more). German delivery date pushed back to the time the sun beomes a red giant

The attempt to run the fix will be a call, by the treasonous traitors the Diebold machine say we wanted to employ  to manage our authorizationz begin to work a repeal of eminent domain. Datz when it gonna get real messy.

Dey got another thing coming. And believe me baby, it hurt.


Thu, 03/10/2016 - 10:15 | 7295470 ersatz007
ersatz007's picture

Trying to understand why someone, other than a troll, would downvote StuckOnZero's post. 

Thu, 03/10/2016 - 10:34 | 7295585 Lurk Skywatcher
Lurk Skywatcher's picture

Its possible to downvote your own post.

You know, to create the illusion of resistance that can be enough to make people who weren't going to vote decide to vote against that one red arrow...

Thu, 03/10/2016 - 10:41 | 7295616 TonyRUs
TonyRUs's picture

lot of thought went into that mouse click

Thu, 03/10/2016 - 10:45 | 7295631 Cadavre
Cadavre's picture

Could be someone fron the Film Actors Guild was disturbed with the implied derogatory use of the word "sucking"?

Thu, 03/10/2016 - 11:10 | 7295736 quadraspleen
quadraspleen's picture

A central banker might downvote that post. Or a politician. I expect both comment here frequently

Thu, 03/10/2016 - 12:10 | 7295970 hedgeless_horseman
hedgeless_horseman's picture



Trying to understand why someone, other than a troll, would downvote StuckOnZero's post.

Ask the down voter...

Jtrillian     03/10/2016 - 08:51     Sucking more life out of the     -1

Thu, 03/10/2016 - 14:10 | 7296488 gattaca
gattaca's picture

howd u know that?

Thu, 03/10/2016 - 09:30 | 7295203 PT
PT's picture

Problem:  The smart people do not borrow money.
Solution:  Lend money to idiots.
Problem:  The idiots are going bankrupt because they are idiots.
Solution:  Lend more money to idiots.

... And now we understand the evolutionary link that preserves idiots ...

When you own a printing press, the solution to debt is more debt.  Gee.  I wonder why ...

Thu, 03/10/2016 - 09:35 | 7295230 spanish inquisition
spanish inquisition's picture

Should buy insolvent banks another couple of weeks. Algos should figure it out by the end of the day and sell the rip.

Thu, 03/10/2016 - 10:26 | 7295539 HungryPorkChop
HungryPorkChop's picture

Those algo's are rigged to keep the banks alive otherwise the host dies.  So far QE has been very good for the banks where they get a massive influx for money-for-nothing!  Beg aginst banks when QE is announced at your own peril. 

Thu, 03/10/2016 - 11:22 | 7295784 piliage
piliage's picture

Problem:  The idiots are going bankrupt because they are idiots.
Solution:  Lend more money to idiots

Solution: give trillions of the taxpayer's Euros/Dollars to the idiots who loaned the idiots money, so the idiots loaning the money can loan more money to the idiots.

There, fixed it for ya...




Thu, 03/10/2016 - 11:24 | 7295801 DeadFred
DeadFred's picture

How long before we see if Mr. D just pulled a Kuroda? The BOJ move went south fast will the ECB follow suit? I, for one, am hoping he has the same effect on precious metals.

Thu, 03/10/2016 - 09:03 | 7295065 Father Thyme
Father Thyme's picture


Thu, 03/10/2016 - 09:04 | 7295071 Oldwood
Oldwood's picture

Have we been saved? I NEED to know!

Thu, 03/10/2016 - 09:07 | 7295087 Cognitive Dissonance
Cognitive Dissonance's picture

Nope. You're still going to hell. Wait....you mean the other 'saved'? Nope, we're all still going to fiat hell.

Thu, 03/10/2016 - 09:23 | 7295157 Anasteus
Anasteus's picture

"Well, the people wanted a "bazooka-sized" surprise from Draghi, and they got it."

Well, 'the people' is a strong word but perhaps 'let the rich become richer and the poor poorer'.

Thu, 03/10/2016 - 09:05 | 7295078 firstdivision
firstdivision's picture

If this shit isn’t working in Japan, it’ll definitely work in Europe.  If it doesn’t work in Europe, it’ll definitely work in the US. If it doesn’t work in the US, Japan cuts rates further, then raise QE program.

Thu, 03/10/2016 - 09:09 | 7295098 Cognitive Dissonance
Cognitive Dissonance's picture

Thus the escalating spiral down the currency toilet bowl. Does it go counter clock wise down under?

Thu, 03/10/2016 - 09:41 | 7295266 waterwitch
waterwitch's picture

Actually it's clockwise.

Thu, 03/10/2016 - 09:55 | 7295352 Cognitive Dissonance
Cognitive Dissonance's picture


It depends upon which down under you mean. To those in the Southern Hemisphere, isn't down under the northern hemisphere?

Thu, 03/10/2016 - 10:04 | 7295396 VinceFostersGhost
VinceFostersGhost's picture



I'll throw a banger and a shrimp on the Barbey for you mate.


A question......if you're on the equator.....what does it do?

Thu, 03/10/2016 - 10:15 | 7295469 Element
Element's picture

Think we need to abandon the down under terminology ... what about cape town? Patagonia?At least we now know what happened to Easter Island ... everyone fell off! ... trees to ... not the fucking heads though! ... figure that one out.

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