ECB rate cut takes markets by surprise – time to crack Draghi’s code

By Eva Taylor
November 7, 2013


After today’s surprise ECB move it is safe to forget the code words former ECB President Jean-Claude Trichet never grew tired of using – monitoring closely, monitoring very closely, strong vigilance, rate hike. (No real code language ever emerged for rate cuts, probably because there were only a few and that was towards the end of Trichet’s term.)

Strongly vigilant?

By Mike Peacock
November 7, 2013

An alarming drop in euro zone inflation – to 0.7 percent from 1.1 percent – throws today’s European Central Bank policy meeting into very sharp relief. Not since the central bank cut interest rates in May has it been under such scrutiny.

Take-off has been delayed

By Mike Peacock
November 6, 2013

Euro zone services PMIs and German industry orders data will offer the latest snapshot of the currency bloc’s economy which the European Commission now forecasts will contract by 0.4 percent this year and grow just 1.1 percent in 2014 – hardly escape velocity, in fact barely taxiing along the runway.

What’s happened to euro inflation?

By Mike Peacock
November 5, 2013

New European Commission macro forecasts for the euro zone and the EU have been given added significance by an alarming drop in inflation to 0.7 percent which has heaped pressure on the European Central Bank to ward off any threat of deflation.

It’s all Greek

By Mike Peacock
November 4, 2013

The EU/IMF/ECB troika is due to return to Athens to resume a review of Greece’s bailout after some sparring over budget measures.

Spanish sums

By Mike Peacock
October 29, 2013

Spanish third quarter GDP figures tomorrow are likely to confirm the Bank of Spain’s prediction that the euro zone’s fourth largest economy has finally put nine quarters of contraction behind it, albeit with growth of just 0.1 percent.

The Italian Job

By Mike Peacock
October 28, 2013

Italy has dropped out of the spotlight a little following the protracted political soap opera surrounding Silvio Berlusconi. But it remains perhaps the euro zone’s most dangerous flashpoint.

Can they kick it? Yes they can

October 15, 2013

Click here for suggested soundtrack to this blog 

During the recent round of financial crises, policymakers have done a whole lot of “kicking the can down the road”.

A tale of two budgets

By Mike Peacock
October 15, 2013

 

It’s deadline day for euro zone member states to submit their 2014 budget plans to the European Commission for inspection and we’re waiting on Italy and Ireland.

Greek turning point?

By Mike Peacock
October 7, 2013

Greece will unveil its draft 2014 budget plan which is expected to forecast an end to six years of recession.