Eva's Feed
May 25, 2012

Fed’s Plosser warns on discretionary policy moves

ELTVILLE, Germany, May 25 (Reuters) – The debate over how
the U.S. Federal Reserve can best articulate its policy actions
intensified on Friday as a top Fed official warned against
‘discretionary’ decisions, questioned forward guidance and asked
if a more systematic approach was desirable.

Philadelphia Fed President Charles Plosser said the
financial crisis has tied the hands of many central banks,
including the Fed, creating a “conundrum” of near-zero interest
rates and a search for new and untested ways to boost economies.

May 25, 2012

Fed’s Plosser warns on discretionary policy decisions

ELTVILLE, Germany (Reuters) – The debate over how the Federal Reserve can best articulate its policy actions grew on Friday as a top Fed official warned against discretionary decisions, and asked whether a more systematic approach was desirable.

Philadelphia Fed President Charles Plosser said the financial crisis has tied the hands of many central banks, including the Fed, creating a “conundrum” of near-zero interest rates and a search for new and untested ways to boost economies.

Apr 30, 2012

Euro lending growth slows, banks spend ECB cash on bonds

FRANKFURT, April 30 (Reuters) – Growth in lending to euro
zone firms and consumers slowed in March as banks scaled up
purchases of government bonds, showing that an ambitious funding
drive by the European Central Bank has yet to trickle down to
the real economy.

Monday’s ECB data offered the first pointer to loan activity
since the central bank completed the second of two tenders that
flooded the euro zone’s banking sector with more than 1 trillion
euros of cheap three-year cash.

Apr 30, 2012

Euro zone March money supply growth outpaces loans

FRANKFURT (Reuters) – Lending to euro zone firms and consumers grew in March but more slowly than the amount of money in circulation, suggesting the impact on loan activity of ECB actions to revive the banking system remains limited.

Loans to the private sector rose an annual 0.6 percent compared with 0.8 percent in February and a Reuters poll forecast for 0.7 percent, European Central Bank data showed on Monday.

Apr 4, 2012

ECB holds rates as growth risks prevail

FRANKFURT (Reuters) – The European Central Bank held interest rates at a record low of 1 percent on Wednesday, resisting German pressure to flag an exit from its crisis-fighting mode while support measures take full effect and support an increasingly shaky recovery.

A batch of grim economic indicators and renewed concerns about the public finances in Spain – the euro zone’s fourth-largest economy – have fuelled worries that the euro zone is in recession and that the sovereign debt crisis may flare up again.

Apr 4, 2012

ECB holds rates as growth, inflation paths diverge

FRANKFURT, April 4 (Reuters) – The European Central Bank
held interest rates at a record low of 1 percent on Wednesday
and is expected to resist German pressure to flag an exit from
its crisis-fighting mode as the euro zone recovery looks
increasingly shaky and concerns grow about Spain.

Germany’s powerful Bundesbank has led a push by central
bankers from the euro zone’s core for the ECB to begin preparing
an exit from crisis measures that have seen it loosen the rules
for tapping ECB funding operations.

Mar 26, 2012

German housing boom won’t bust bank’s rate strategy

FRANKFURT, March 26 (Reuters) – A sharp rise in German
property prices is worrying some European Central Bank
policymakers but the sudden upswing is unlikely to push the ECB
into raising interest rates.

The ECB sets rates for all 17 euro zone members no matter
what state their individual economies are in, and Germany’s
mini-boom is more than balanced by depressed housing markets
elsewhere, notably Spain and Ireland.

Mar 22, 2012

Ireland expected to win ECB backing for bond deal

DUBLIN/FRANKFURT, March 22 (Reuters) – Ireland expects to
win support from the European Central Bank for its plan to avoid
a 3.1 billion euro payment due next week on high interest loans
put in place at the height of the financial crisis to prop up
one of its failed banks.

The proposal, put ECB President Mario Draghi by Ireland’s
finance minister and its central bank governor, will see Ireland
issue a 13-year bond to meet this year’s 3.1 billion euro
payment of so-called promissory notes used to bolster the former
Anglo Irish Bank.

Mar 21, 2012
via MacroScope

ECB old boys speak their minds

Photo

It is often said that once people leave an organisation, they find it easier to speak their minds. Lorenzo Bini Smaghi and Juergen Stark are certainly proving the point.

Since leaving their posts on the European Central Bank‘s powerful Executive Board at the end of last year, Bini Smaghi and Stark have spoken out where the ECB has remained tight-lipped.

Mar 8, 2012

ECB fires inflation warning, trumpets success of cash flood

FRANKFURT, March 8 (Reuters) – The European Central
Bank signalled its policy course was slowly turning on Thursday,
delivering a surprise warning on inflation and calling
governments and banks to build on its recent blitz of radical
support measures to foster a full crisis recovery.

The ECB kept interest rates at a record of low of 1 percent
for a third month running as expected, after completing two
monster injections of cheap cash which have flushed over a
trillion euros of three-year money into the euro zone.