FRANKFURT (Reuters) – German police used pepper spray and batons against anti-capitalist demonstrators from the Blockupy movement on Saturday during a second day of protests against Europe’s austerity policies.
Around 7,000 protesters joined an initially peaceful march through Frankfurt, Germany’s financial capital. Many brandished signs with slogans that read “Make love, not war” and “IMF – get out of Greece”.
VIENNA (Reuters) – The European Central Bank is looking at ways to boost banks’ liquidity rather than cutting interest rates, ECB policymaker Ewald Nowotny said in an interview with Reuters.
Sitting in his wood-panelled office at the Austrian central bank in Vienna, the ECB Governing Council member said he expected the economy to brighten eventually.
FRANKFURT, May 26 (Reuters) – The European Central Bank
faces a race against time to set up a watchdog for the euro
zone’s 6,000 banks and risks having an under-equipped team in
place when it begins the task in mid-2014.
The Single Supervisory Mechanism (SSM) marks the first step
towards a banking union, Europe’s plan for a more integrated
financial system that foresees a mechanism to wind down
non-viable banks and a deposit guarantee scheme being set up
FRANKFURT (Reuters) – A top U.S. Federal Reserve official urged the European Central Bank on Tuesday to consider employing a U.S.-style quantitative easing programme to counter slowing inflation and recession in the euro zone.
The ECB has engaged in bond purchases in the past but has always withdrawn an equivalent amount of money from markets to ensure its interventions are neutral for the money supply, fearful of stoking inflationary pressures.
FRANKFURT, May 21 (Reuters) – Massive asset purchases are
the closest thing to normal monetary policy once interest rates
get near zero, a senior U.S. Federal Reserve official said on
Tuesday, recommending that the European Central Bank weigh such
action if inflation falls further.
St. Louis Federal Reserve Bank President James Bullard, a
voting member of the Fed’s policy-setting committee this year,
also said the U.S. central bank should keep buying bonds, while
adjusting the pace of purchases up or down, according to
incoming economic data.
MANNHEIM, Germany (Reuters) – German analyst and investor sentiment edged up in May after dropping sharply in the previous month, suggesting the euro zone’s largest economy is overcoming concerns over a flare-up in the bloc’s debt crisis and is back on track to a timid recovery.
Economists said the rise was considerably weaker than they had expected, probably due to the currency bloc’s weak economy weighing on morale, but it still pointed in the right direction.
FRANKFURT (Reuters) – Cutting the European Central Bank’s deposit rate below zero would be an effective way to help the euro zone economy, ECB policymaker Ignazio Visco was quoted as saying on Monday, sending the euro lower.
Taking the deposit rate into negative territory would mean the ECB charging commercial banks for holding their money overnight, something ECB President Mario Draghi has said the central bank was “technically ready” to do.
FRANKFURT, May 3 (Reuters) – To boost bank lending to small
euro zone companies, the European Central Bank wants to revive
an asset class that was widely criticised for its role in the
financial crisis – asset-backed securities.
These allow banks to move at least some credit risk off
their balance sheets by packaging individual loans into new
instruments and selling them on to other investors.
FRANKFURT, May 2 (Reuters) – The European Central Bank is
expected to cut its main interest rate for the first time in 10
months on Thursday, driven to act by an economy wallowing in
recession and freed to do so by sharply falling inflation
Economic data over the past weeks since ECB President Mario
Draghi said the bank stood ready to act if necessary has shown
growth prospects darkening.
FRANKFURT (Reuters) – Comments by European Central Bank policymakers on Monday stressing falling inflation and poor growth prospects in the euro zone suggest the ECB may be leaning towards a further cut in its main refinancing rate.
ECB Vice-President Vitor Constancio said inflation had fallen “rather significantly” and a rate cut was “always a possibility”, but Governing Council member Klaas Knot said the ECB had “little ammunition left” and should use it carefully.