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Jan 22, 2015

ECB launches last-ditch programme to revive euro economy

FRANKFURT (Reuters) – The European Central Bank took the ultimate policy leap on Thursday, launching a government bond-buying programme which will pump hundreds of billions of new money into a sagging euro zone economy.

The ECB said it would buy government bonds from this March until the end of September 2016 despite opposition from Germany’s Bundesbank and concerns in Berlin that it could allow spendthrift countries to slacken economic reforms.

Jan 22, 2015

ECB to decide on bond-buying plan to revive euro zone

FRANKFURT, Jan 22 (Reuters) – The European Central Bank is
poised to announce a plan on Thursday to buy government bonds,
resorting to its last big policy option for breathing life into
the flagging euro zone economy.

Market expectations are sky-high for the ECB to unveil
large-scale quantitative easing (QE) – printing money to buy
government bonds – despite opposition from Germany’s Bundesbank
and concerns in Berlin that this could allow spendthrift
countries to slacken economic reforms.

Jan 21, 2015

ECB to decide on bond-buying plan for reviving euro zone economy

FRANKFURT (Reuters) – The European Central Bank is poised to announce a plan on Thursday to buy government bonds, resorting to its last big policy tool for breathing life into the flagging euro zone economy and fending off deflation.

Market expectations are sky-high for the ECB to unveil a large-scale program of quantitative easing (QE) – printing money to purchase the sovereign bonds – despite opposition from Germany’s Bundesbank and concerns in Berlin that this could allow spendthrift countries to slacken their economic reforms.

Jan 21, 2015

Bank of Canada delivers shock rate cut as ECB gears up for quantitative easing

OTTAWA/FRANKFURT (Reuters) – The Bank of Canada joined the list of “unpredictable” central banks on Wednesday with a shock quarter point rate cut as the European Central Bank prepared a 600 billion euro ($695 billion) bond-buying program aimed at lifting Europe out of its economic doldrums.

The Canadian move came in response to a sharp drop in oil prices that hit the commodity-dependent economy, expected to grow by just 1.5 percent in the first half of this year compared with the central bank’s previous forecast of 2.4 percent.

Jan 21, 2015

Bank of Canada delivers shock rate cut as ECB gears up for QE

OTTAWA/FRANKFURT, Jan 21 (Reuters) – The Bank of Canada
joined the list of “unpredictable” central banks on Wednesday
with a shock quarter point rate cut as the European Central Bank
prepared a 600 billion euro ($695 billion) bond-buying program
aimed at lifting Europe out of its economic doldrums.

The Canadian move came in response to a sharp drop in oil
prices that hit the commodity-dependent economy, expected to
grow by just 1.5 percent in the first half of this year compared
with the central bank’s previous forecast of 2.4 percent.

Jan 21, 2015

ECB set to decide on money printing plan

FRANKFURT (Reuters) – The European Central Bank’s Executive Board has proposed a program that would enable the ECB to buy 50 billion euros ($58 billion) in bonds per month starting in March, a euro zone source said on Wednesday.

With the likely start date imminent and only one other opportunity at the beginning of March for governors to agree details, pressure will be high on them to finalize talks and announce the mechanics on Thursday.

Jan 21, 2015

ECB Executive Board proposes 50 billion euros in monthly bond buys: source

FRANKFURT (Reuters) – The European Central Bank’s Executive Board has proposed a program that would see the ECB buy 50 billion euros ($58 billion) in bonds per month starting in March, a euro zone source said on Wednesday.

Reuters could not confirm reports from other media about the duration of the proposed program. The Wall Street Journal said it would last at least one year. News agency Bloomberg said the purchases would run to the end of 2016.

Jan 20, 2015

Demand for home loans jumps in euro zone

FRANKFURT (Reuters) – One in four banks across the euro zone saw a rise in home loan demand toward the end of last year and almost as many expect the trend to continue, a survey by the European Central Bank showed on Tuesday.

As consumers bet on rising house prices and banks loosen lending standards, demand for home loans has shot up, the study found, a trend that will fuel concerns in Germany and elsewhere that cheap money could be blowing up a property bubble.

Jan 19, 2015

Merkel: ECB action no substitute for economic reform

ESCHBORN, Germany, Jan 19 (Reuters) – Germany’s chancellor
made a rare public intervention in the debate about money
printing by the European Central Bank on Monday, warning it was
no substitute for economic reforms in the euro zone.

Speaking to an audience near Frankfurt that included ECB
President Mario Draghi, Merkel said any move by the ECB to buy
government bonds with new money should not be used as an excuse
to put such reforms on the back burner.

Jan 14, 2015

EU court adviser sees no major hurdles to ECB bond-buying

LUXEMBOURG (Reuters) – A European Central Bank bond-buying plan floated in 2012 would not break EU law subject to certain conditions, a top adviser to the European Union’s highest court said on Wednesday.

Pedro Cruz Villalon, advocate general at the court, said while the ECB was entitled to buy bonds and that the scheme outlined was “necessary” and “proportionate”, it would first have to spell out its justification and remove itself from any direct aid programme to a euro zone member state.

    • 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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