Correspondent, Brussels
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Sep 4, 2015

Dim prospects for Europe boost chances of extra money printing

FRANKFURT (Reuters) – A day after Mario Draghi presented a sobering economic outlook for the euro zone, the nervousness coursing through his European Central Bank was underscored by a fellow policy maker.

“There is serious uncertainty at the moment because you don’t know exactly whether this is a pothole on the road or a landslide,” said Ewald Nowotny, the head of Austria’s central bank and member of the ECB’s policy-setting Governing Council, of which Draghi is president.

Sep 3, 2015

Greece not ready yet for ECB to buy its bonds – Draghi

FRANKFURT (Reuters) – Greece has to pass a review of its bailout program and show a commitment to reforms before the European Central Bank can start buying its bonds as part of the bank’s asset purchase program, ECB President Mario Draghi said on Thursday.

Greece has so far been excluded from the quantitative easing (QE) program due to its low credit rating but it could be admitted through a waiver for bailed-out countries.

Sep 3, 2015

ECB sees weaker growth, inflation in euro zone, says ready to act

FRANKFURT (Reuters) – The European Central Bank cut its inflation and growth forecasts for the euro zone on Thursday and its president said things could get worse.

The bank pledged to beef up or prolong its bond-buying programme if the picture indeed darkened further, although no one on bank’s Governing Council had argued for it now.

Sep 3, 2015

ECB seen cutting inflation outlook, hinting at more policy action

FRANKFURT (Reuters) – The European Central Bank is set to cut its inflation forecasts on Thursday but hold back from concrete policy action, promising only to beef up its bond-buying programme if growth and inflation prospects weaken further.

The bank, which left interest rates unchanged in a widely predicted decision, is expected to say the chances of missing its medium-term inflation target have increased due to lower oil prices, weaker growth in China and an appreciating euro.

Sep 3, 2015

ECB to cut inflation forecast but keep powder dry

FRANKFURT (Reuters) – The European Central Bank is set to cut its inflation forecasts on Thursday but hold back from concrete policy action, promising only to beef up its bond-buying program 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 due to lower oil prices and weaker growth in China.

Aug 31, 2015

Low inflation in Europe puts spotlight on ECB

BRUSSELS/ FRANKFURT (Reuters) – With low price inflation serving as a reminder of the euro zone’s delicate health, the European Central Bank is having to reassure market investors that it can do yet more to help the economy.

Fresh data showed on Monday that inflation throughout the 19-country bloc was just 0.2 percent – illustrating that while the euro zone’s economy is stabilizing, it is doing so only at a very low level.

Aug 25, 2015

ECB’s Constancio plays down China crash, says too early for ECB to act

, Aug 25 (Reuters) – The European Central
Bank’s vice president sought to play down a crash in China’s
stock market, saying the ripple effects may be limited and it
was too early for the ECB to react.

Vitor Constancio made the remarks on Tuesday after China’s
central bank cut interest rates, ratcheting up support for a
stuttering economy and a plunging stock market that has sent
shockwaves around the globe.

Jul 27, 2015

IMF paints dim picture for Europe, suggests more money printing may be needed

BRUSSELS/FRANKFURT, July 27 (Reuters) – The International
Monetary Fund warned on Monday that the euro zone’s prospects
were modest and that more money printing than planned may be
needed.

Contrasting the IMF’s relative gloom, however, German think
tank Ifo reported improving confidence the 19-country bloc’s
largest economy.

Jul 26, 2015

Debt conundrum to keep Greek banks in months-long freeze

FRANKFURT/ ATHENS (Reuters) – Greek banks are set to keep broad cash controls in place for months, until fresh money arrives from Europe and with it a sweeping restructuring, officials believe.

Rehabilitating the country’s banks poses a difficult question. Should the euro zone take a stake in the lenders, first requiring bondholders and even big depositors to shoulder a loss, or should the bill for fixing the banks instead be added to Greece’s debt mountain?

Jul 16, 2015

Greek banks to get brief reprieve before overhaul

FRANKFURT/ATHENS (Reuters) – Greek banks face deep surgery including closures or mergers after a bailout but they are seen getting a brief reprieve with a capital injection before the painful overhaul begins.

As part of a deal to secure new funding, Athens had to surrender much autonomy over its economy and this will include handing over more power to European institutions to decide the fate of its sick banks.

    • About John

      "I am a Reuters correspondent in Brussels, writing about the European Union. I moved here last year from Germany, where I had reported about the financial crisis, turning up numerous scoops and even winning a prestigious business reporting award. Beforehand, I worked with The Sunday Times in London."
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