FRANKFURT (Reuters) – The European Central Bank, eying tentative signs of euro zone economic recovery, is expected to eschew an major decisions on Thursday and keep its easy-money policy in place.
It will contrast with plans by the U.S. Federal Reserve to begin to withdraw its economy-boosting stimulus.
FRANKFURT (Reuters) – Loans to the euro zone’s private sector contracted further in May as recession saps appetite for investment and spending while banks restrain lending as they repair their balance sheets.
Loans to the private sector fell 1.1 percent from the same month a year ago, data released by the ECB on Thursday showed, a slightly bigger fall than the mid-range forecast for a drop of 0.9 percent in a Reuters poll of economists. EUM3PC=ECI
BASEL (Reuters) – Markets over-reacted to the Federal Reserve’s plan to stop money printing but volatility is inevitable and should not deter other central banks from doing the same when the time is right, the head of the Bank for International Settlements said.
The annual report from the BIS – known as “the central banks’ central bank” – provoked a storm of response at the weekend after saying an exit from accommodative policies would only become harder over time.
FRANKFURT (Reuters) – An influential former ECB official has called on European Union leaders to put further integration on hold for up to five years, work out where they want to take the project, and decide who should still use the euro.
In an interview with Reuters, former European Central Bank chief economist Juergen Stark also said the EU should take on board some of Britain’s criticisms of the bloc and keep it in the fold where it is needed.
FRANKFURT, June 23 (Reuters) – Central banks should not
allow fears of disrupting markets to delay the timely withdrawal
of cheap money they pumped out to calm crises, the Bank for
International Settlements said on Sunday.
The U.S. Federal Reserve has become the first of the world’s
major central banks to lay out a plan for pulling back extra
funding, triggering a global selloff when it said it would begin
winding down its bond purchases later this year.
FRANKFURT, June 20 (Reuters) – Germany’s triple-A rated
government is cautiously entering new territory by clubbing
together with ten of its regions for a new bond issue to bring
down their borrowing costs, although it will only underwrite a
fraction of the deal.
The country’s debt agency announced on Thursday the issuance
of up to 3 billion euros ($4 billion) of the joint
Deutschland-Bond within the coming weeks, potentially opening
the door to a new system of financing for Germany’s states, some
of which are struggling with high debt loads or economic
FRANKFURT (Reuters) – The European Central Bank has room to cut interest rates further, Executive Board member Peter Praet said on Tuesday, adding that the central bank is paying “great attention” to euro zone inflation, currently below its target.
The ECB cut its main refinancing rate to 0.5 percent and kept its deposit rate a zero at its May policy meeting, but said it stood ready to act again should economic conditions require more stimulus. It kept rates unchanged in June.
FRANKFURT (Reuters) – The European Central Bank left interest rates unchanged on Thursday and said it had discussed a raft of other policy options it could take if the euro zone economy does not emerge from recession later this year.
ECB President Mario Draghi said economic conditions did not warrant moves such as making banks pay to park their money with it overnight by taking the deposit rate into negative territory or cutting its main rate from a record low of 0.5 percent.
FRANKFURT, June 6 (Reuters) – The European Central Bank left
interest rates unchanged on Thursday and said it had discussed a
raft of other policy options it could take if the euro zone
economy does not emerge from recession later this year.
ECB President Mario Draghi said economic conditions did not
warrant moves such as making banks pay to park their money with
it overnight by taking the deposit rate into negative territory
or cutting its main rate from a record low of 0.5 percent.
FRANKFURT, June 1 (Reuters) – German police used pepper
spray and batons against thousands of anti-capitalist
demonstrators from the Blockupy movement on Saturday during a
second day of protests in Frankfurt against Europe’s austerity
Planned rallies in struggling euro zone members Spain and
Portugal drew fewer people than expected, but in Germany’s
financial capital around 7,000 protesters marched with signs
reading “Make love, not war” and “IMF – get out of Greece”.