Archive

Reuters blog archive

from MacroScope:

ECB deflation risk denial has echoes of 2009

Euro zone policymakers like to talk. They often contradict each other at separate speaking engagements on the same day. But they have struck a chorus in recent weeks, asserting that deflation is not a threat.

Members of the ECB Governing Council have been particularly vocal, insisting they will not have to alter policy to counter falling prices.

Jan 9: Mario Draghi says the euro zone may "experience a prolonged period of low inflation" -- steering clear of even mentioning the word deflation.

Jan 21: ECB's Ewald Nowotny says "we neither see inflation nor do we see deflation in the euro zone".

from Financial Regulatory Forum:

ECB says can’t bail out Greece, sees contagion risk

By Boris Groendahl and Terhi Kinnunen

VIENNA/HELSINKI, Feb 9 (Reuters) - Greece must get its own house in order itself as the European Central Bank cannot bail it out, two ECB policymakers reiterated on Tuesday.

"Greece, being a euro country, is under the regime of euro regulations, and so the main policy approach is of course that they have to solve the problems themselves," ECB Governing Council member Ewald Nowotny said in an interview.

from Financial Regulatory Forum:

Austria nationalises Hypo to avoid bank’s collapse

By Christian Gutlederer and Peter Maushagen

VIENNA/MUNICH, Dec 14 (Reuters) - Austria nationalised Hypo Group Alpe Adria on Monday to avoid a collapse that could have undermined trust in banks in eastern Europe and cast doubt over Austria's and Germany's backing of state-owned lenders.

Austria is taking full control of the ailing bank after a high-stakes gamble over the weekend that soured German-Austrian relations and required interventions by the presidents of the European Central Bank and the Bundesbank to be resolved.

  •