ECB policy makers must be very worried, if not close to desperate about the outlook for the Euro area economy. So worried that they risk losing credibility by cutting rates again after saying in June that they have reached the lower bound. At that time, Draghi left the door open for “little technical adjustments”. Buts let’s face it: The refi rate was cut to make the upcoming TLTROs more attractive. The deposit rate was cut to weaken the EUR. It was an easing of monetary policy – not a “technical adjustment” – against the backdrop of an economy that looks weaker than did three months ago. In a separate note, we elaborated on the market impact of the ECB’s easing package.