ECB President Mario Draghi’s ‘whole menu’ of monetary policy options to spur lending and boost euro area inflation from below zero appears to have few new dishes, if any at all.
Delaying its first rate hike in nearly a decade after taking a pass in June and July means the U.S. central bank may have stepped further away from an escape from zero rates and $3.7 trillion of asset purchases bloating its balance sheet.
About a year ago, the European Central Bank singled out a recovery in bank loans to private businesses as crucial to a lasting economic recovery – and even more crucially for the ECB, a rise in inflation which it targets at 2 percent.
from Rahul Karunakar:
Almost a year after the European Central Bank announced new cash loans tied to actual lending to small and medium enterprises, data on Friday is expected to show euro zone private loans are picking up pace.
The Greek government states that a cash-for-reforms deal with the EU and IMF can be finalized in the next 10 days but the other side is much less optimistic and there was no sign of a breakthrough at the EU summit in Riga which Prime Minister Alexis Tsipras had been pinning some hope on.