Senior Economics Correspondent, Germany
Paul's Feed
Nov 4, 2014

Preview: ECB seen holding fire to assess impact of new measures

FRANKFURT (Reuters) – The European Central Bank will hold off on fresh policy action when it meets on Thursday, waiting for updated ECB staff forecasts next month and traction from its latest stimulus measures before any possible further steps.

The piecemeal rollout of the new stimulus and the impending update of the forecasts preclude fresh measures for now, even if euro zone inflation of just 0.4 percent – far below the ECB’s 2-percent target – and economic stagnation may argue for action.

Nov 4, 2014

ECB seen holding fire to assess impact of new measures

FRANKFURT, Nov 4 (Reuters) – The European Central Bank will
hold off on fresh policy action when it meets on Thursday,
waiting for updated ECB staff forecasts next month and traction
from its latest stimulus measures before any possible further
steps.

The piecemeal rollout of the new stimulus and the impending
update of the forecasts preclude fresh measures for now, even if
euro zone inflation of just 0.4 percent – far below the ECB’s
2-percent target – and economic stagnation may argue for action.

Nov 3, 2014

Nouy says European banking union far from complete

FRANKFURT, Nov 3 (Reuters) – The plan for closer EU
financial integration is far from complete and governments need
to deliver on their promises, said Daniele Nouy, head of the new
banking watchdog that marks the first pillar of Europe’s banking
union project.

Nouy was speaking on the eve of the Single Supervisory
Mechanism (SSM) officially taking over as the euro zone’s
banking watchdog, a year after lawmakers rubber stamped the
project that is part of a bigger strategy to avert a repeat of
the financial crisis through closer integration of the sector.

Oct 30, 2014

Weak inflation figures hit euro zone, but not expected to jolt ECB

FRANKFURT (Reuters) – Weak price pressure in Germany and Spain compounded the European Central Bank’s policy headache on Thursday but it is still expected to hold off action next week, waiting to assess the impact of its new round of stimulus.

Brighter euro zone economic sentiment and expectations for a rise in corporate loan demand in the coming quarter offset the bleak inflation readings and gave the ECB some grounds to hold off at least another month before taking any possible further action.

Oct 29, 2014

Banks see upswing in loan demand across euro zone

FRANKFURT (Reuters) – Around one in five banks across the euro zone expect companies to approach them for more credit as the year draws to a close, with those in Germany and France most optimistic, the European Central Bank said on Wednesday.

The upbeat forecast bodes well for an improvement in the bloc, where economic growth has been grinding to a virtual halt. Much of the blame for the slowdown has been blamed on a dearth of credit to firms to expand their businesses.

Oct 27, 2014

ECB stimulus may lack desired scale, QE an option: sources

FRANKFURT (Reuters) – The European Central Bank’s plan to buy private sector assets may fall short of its goal and pressure is likely to build for bolder action early next year, with government bond purchases an option, ECB sources said.

The euro zone’s central bank started buying covered bonds last week and plans to buy asset-backed securities (ABS), or bundled loans, later this year — both with a view to fostering lending to businesses and thereby supporting the bloc’s economy.

Oct 7, 2014

ECB quietly pins its hopes on falling euro

FRANKFURT (Reuters) – Grappling with an ailing euro zone economy and stagnant prices, the European Central Bank is hoping that help will come from something it cannot control: the value of the euro.

As Washington prepares to stopper the supply of cheap money that has been helping it revive the United States, the euro has started to fall steeply against the dollar.

Oct 1, 2014

ECB to flesh out asset-purchase plan it hopes will buoy euro zone

FRANKFURT, Oct 2 (Reuters) – The European Central Bank will
present details on Thursday of a new asset-buying plan with
which it hopes to revive the flagging euro zone economy and see
off the spectre of deflation.

The ECB plans to buy asset-backed securities (ABS) -
packages of reparcelled loans – with a view to spurring the
market for such credit and supporting lending to the small- and
mid-sized firms that form the backbone of the euro zone economy.

Sep 16, 2014

ECB invites banks to tap new funds it hopes will pep up euro zone

FRANKFURT, Sept 16 (Reuters) – The European Central Bank
invited banks on Tuesday to bid for a fresh round of long-term
loans it hopes will stimulate lending to businesses and
reinvigorate the euro zone economy but which may see only modest
take-up.

The programme is a key plank of ECB efforts to stave off the
threat of deflation and breathe life into the euro zone economy,
which stagnated in the second quarter. At 0.3 percent, inflation
is running well below the ECB target of just under 2 percent.

Sep 4, 2014

ECB unveils surprise package to shore up euro zone

FRANKFURT, Sept 4 (Reuters) – The European Central Bank cut
interest rates to a fresh record low on Thursday and launched a
new scheme to push money into the flagging euro zone economy,
surprising markets and leaving open the option of more to come.

In a series of measures highlighting growing concern about
the currency bloc’s health, the ECB cut its main refinancing
rate to 0.05 percent from 0.15 percent and drove the overnight
deposit rate deeper into negative territory, now charging banks
0.20 percent to park funds with the central bank.

    • About Paul

      "I lead our economic news file from Berlin, where we report on the performance of the German economy – Europe’s largest – and economic policy: everything from financial regulation to dealing with the euro zone debt crisis. I previously reported on political and economic news from Paris and on earlier assignments worked in Frankfurt, Vienna and London."
    • Follow Paul