Balazs's Feed
Sep 2, 2015

ECB to cut inflation forecast but keep powder dry

FRANKFURT, Sept 3 (Reuters) – The European Central Bank is
set to cut its inflation forecasts on Thursday because of
falling oil prices and China’s economic slowdown, and it will
probably promise to beef up its bond- buying programme if
prospects weaken further.

The bank is expected to leave interest rates unchanged and
argue that the chance of missing its medium-term inflation
target has increased but the time is not yet right to take
concrete policy action. It is also likely to say its $1 trillion
euro plus asset buying programme is working, albeit slowly.

Aug 27, 2015

ECB faces inflation headache even as lending bounces

FRANKFURT (Reuters) – Lending to euro zone firms grew at the fastest pace since early 2012 last month but the European Central Bank may still come under pressure to ramp up its stimulus measures as falling oil prices and a slowdown in China curb inflation.

Credit to companies, arguably the most important driver for long-term recovery, grew by 0.9 percent from 0.2 percent in June and lending growth to households picked up to 1.9 percent from 1.7 percent, data showed on Thursday.

Aug 27, 2015

Euro zone lending picks up in July but China risk looms

FRANKFURT (Reuters) – Lending to euro zone households and firms accelerated slightly in July, European Central Bank data showed on Thursday, in a sign that the bank’s aggressive asset-purchase program is bringing some results.

Lending growth to households picked up to 1.9 percent in July from 1.7 percent a month, demonstrating resilience in the face of a slowdown in China and other emerging economies.

Aug 26, 2015

ECB’s economist says bank will act to combat China, oil impact on inflation target

MANNHEIM, Germany, Aug 26 (Reuters) – The risk has increased
that the European Central Bank won’t get inflation back up to
where it wants, the bank’s chief economist said on Wednesday,
pledging to beef up its anti-deflation asset-buying programme if
necessary.

Peter Praet, who is also a member of the ECB’s executive
board, told reporters on the sidelines of a conference in
Germany that falling commodity prices and a slowdown in China
are hindering the goal of getting inflation back up to around 2
percent.

Aug 26, 2015

ECB inflation target at increased risk: Praet

MANNHEIM, Germany (Reuters) – The risk has increased that the European Central Bank will miss its medium-term inflation target and the bank is prepared to beef up its asset purchase program, known as quantitative easing, if necessary, a top rate setter said on Wednesday.

The bank is buying 60 billion euros worth of assets each month, hoping to boost prices and growth after a brief bout of deflation and expectations that price growth would take years to rise back to the ECB’s target of just below 2 percent.

Aug 19, 2015

Deposits trickling, not flooding back into Greek banks – sources

ATHENS/FRANKFURT, Aug 19 (Reuters) – Deposits are trickling
back into Greece’s banks, banking sources said, offering some
practical justification for a mainly symbolic move by Athens to
cut the system’s reliance on emergency central bank funding.

But there is as yet no evidence of the substantial inflows -
notably of householders’ hoarded ‘mattress cash’ – that might
encourage the Bank of Greece to push for a bigger funding cut,
they said.

Aug 14, 2015

Global economy weekahead – Fed minutes, Chinese property prices in focus

FRANKFURT (Reuters) – September looks increasingly certain for the U.S. Federal Reserve’s first rate hike in nearly a decade but China’s growing economic troubles could yet mess up its plans.

Minutes from the Fed’s July 28-29 meeting due on Wednesday will offer vital clues about its plan to hike rates for the first time since 2006, with rebounding retail sales, solid jobs growth and rising construction all pointing to next month as GDP stays above trend for the world’s largest economy.

Aug 14, 2015

Fed minutes, Chinese property prices in focus

FRANKFURT (Reuters) – September looks increasingly certain for the U.S. Federal Reserve’s first rate hike in nearly a decade but China’s growing economic troubles could yet mess up its plans.

Minutes from the Fed’s July 28-29 meeting due on Wednesday will offer vital clues about its plan to hike rates for the first time since 2006, with rebounding retail sales, solid jobs growth and rising construction all pointing to next month as GDP stays above trend for the world’s largest economy.

Aug 13, 2015

ECB frets over risks from China, Fed rate hike

FRANKFURT (Reuters) – Volatility in Chinese markets may have more impact than expected on the euro zone’s fragile economy, and an increase in U.S. interest rates might also slow its recovery, the European Central Bank said in the minutes of its last meeting.

Economic recovery in the 19-member euro zone was moderate and gradual, a trend the ECB called “disappointing”. Real GDP remained near 2008 levels, while the U.S. economy has rebounded significantly, the ECB said in the minutes, released on Thursday.

Aug 12, 2015

Greek bank access to bailout cash to be restricted -sources

FRANKFURT/BRUSSELS, Aug 12 (Reuters) – Greek banks will have
restricted access to bailout funds until a fresh injection of
equity to recapitalise them several months from now is approved,
sources told Reuters on Wednesday.

An initial 10 billion euros will be made available
“immediately” to shore up confidence in Greek banks, but it will
be placed in a restricted account, at least until a “stress
test” is finished by the middle or end of October, they said.