Balazs's Feed
Nov 9, 2015

Exclusive: ECB rate setters converge on December deposit rate cut

BRUSSELS/FRANKFURT (Reuters) – A consensus is forming at the European Central Bank to take the interest rate it charges banks to park money deeper into negative territory in December, four governing council members said, a move that could weaken the euro and push up inflation.

Some argue that a deposit rate cut should even be larger than the 0.1 percent reduction currently expected in financial markets, the policymakers said.

Nov 9, 2015

ECB rate setters converge on December deposit rate cut

BRUSSELS/FRANKFURT, Nov 9 (Reuters) – A consensus is forming
at the European Central Bank to take the interest rate it
charges banks to park money deeper into negative territory in
December, four governing council members said, a move that could
weaken the euro and push up inflation.

Some argue that a deposit rate cut should even be larger
than the 0.1 percent reduction currently expected in financial
markets, the policymakers said.

Nov 6, 2015

ECB would risk credibility of forward guidance with rate cut: Hansson

FRANKFURT (Reuters) – The European Central Bank has no reason to ease policy now and a deposit rate cut, touted at its last meeting as one option, could undermine its forward guidance and hinder its credibility, Governing Council member Ardo Hansson said.

Recent economic data has been surprisingly strong, and in any case, the ECB still has months to decide whether to extend its 1 trillion euro plus asset-purchase program or end it next September, said Hansson, who is also Estonia’s central bank governor.

Nov 5, 2015

ECB policy setters warn of threat as Draghi shows ready to act

FRANKFURT, Nov 5 (Reuters) – Investors may be losing
confidence in the European Central Bank’s ability to keep prices
rising, a top policy-setter said on Thursday, another suggestion
the central bank remains ready to move.

Vice President Vitor Constancio said surveys showed
confidence was waning that the ECB could get inflation close to
its target of 2 percent annually. That echoed earlier remarks
made by an ECB policy setter from Belgium, Jan Smets.

Oct 27, 2015

Draghi’s compromise with doves heralds ECB policy easing in December

FRANKFURT, Oct 27 (Reuters) – With some rate-setters
advocating immediate policy easing last week, European Central
Bank President Mario Draghi struck a compromise to keep the
doves on side and set up expectations for action in December,
central banking sources said.

Several influential Governing Council members argued that
the ECB’s balance sheet was still relatively small, especially
compared to the U.S. Federal Reserve while Denmark’s deeply
negative deposit rate illustrated that there was still room to
reduce rates, one source with knowledge of the discussion said.

Oct 27, 2015

Euro zone corporate lending growth almost grinds to halt in September

FRANKFURT, Oct 27 (Reuters) – Growth in lending to euro zone
companies almost ground to a halt in September, European Central
Bank data showed on Tuesday, ending a trend that had lasted for
over a year and complicating the picture for the ECB as it
weighs new stimulus measures.

Loans to non-financial corporations grew just 0.1 percent in
September from 0.4 percent the month before, the first monthly
slowdown since June 2014.

Oct 22, 2015

ECB to decide in December if economy needs bigger kick

VALLETTA/FRANKFURT (Reuters) – The European Central Bank is studying new stimulus measures that could be unveiled as soon as December and is prepared to cut its deposit rate deeper into negative territory if needed to fight falling prices, its president said on Thursday.

Consumer prices in the 19-country euro zone slipped by 0.1 percent in September, prompting calls for the ECB to expand or extend its 60 billion euros ($68 billion) a month of asset purchases. The programme was launched in March to help push inflation back to the ECB’s target of just under 2 percent.

Oct 22, 2015

ECB studies new stimulus measures, hints at December action

VALLETTA/FRANKFURT (Reuters) – The European Central Bank is studying new stimulus measures that could be unveiled as soon as December and is prepared to cut its deposit rate deeper into negative territory if needed to fight falling prices, its president said on Thursday.

Consumer prices in the 19-country euro zone slipped by 0.1 percent in September, prompting calls for the ECB to expand or extend its 60 billion euros ($68 billion) a month of asset purchases. The programme was launched in March to help push inflation back to the ECB’s target of just under 2 percent.

Oct 22, 2015

ECB keeps rates on hold, seen opening door to more easing

FRANKFURT/VALLETTA (Reuters) – The European Central Bank kept its interest rates unchanged at a policy meeting on Thursday but President Mario Draghi was likely to keep the door open at a press conference for more monetary stimulus to tackle falling inflation.

The ECB is holding interest rates at record lows and printing money to try to boost consumer prices, which fell by 0.1 percent last month, pulling further away from the ECB’s target of just under 2 percent.

Oct 21, 2015

Excessive bank regulation weighs on growth – Malta finance minister

VALLETTA (Reuters) – Europe has overtightened banking regulation, stunting economic growth, and will not have a meaningful recovery until it gets real about reform and infrastructure, Malta’s finance minister, Edward Scicluna, said on Wednesday.

Europe needs investments, new infrastructure, must cut youth unemployment, enact meticulous structural reforms and avoid the sort of shocks like the years of austerity, Scicluna told Reuters in an interview.