Senior Economics Correspondent, Germany
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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.

Sep 4, 2014

ECB cuts rates, launches new credit scheme as growth evaporates

FRANKFURT (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.

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

Sep 4, 2014

ECB cuts rates to repel deflation threat as pressure mounts

FRANKFURT, Sept 4 (Reuters) – The European Central Bank cut
interest rates to a fresh record low on Thursday, unexpectedly
bringing borrowing costs close to zero to lift inflation from
rock-bottom levels and support the stagnating euro zone economy.

The ECB cut its main refinancing rate to 0.05 percent from
0.15 percent previously and drove the overnight deposit rate
deeper into negative territory, now charging banks 0.20 percent
to park funds with it.

Sep 3, 2014

Draghi under pressure of his own making to deliver ECB stimulus

FRANKFURT (Reuters) – The European Central Bank faces intense market pressure to take policy action on Thursday and risks losing credibility if it fails to back up a dovish message delivered by President Mario Draghi late last month.

Draghi ramped up expectations for Thursday’s ECB meeting when, departing from his speech text, he told the Jackson Hole central bankers’ conference on Aug. 22 that markets had indicated inflation expectations showed “significant declines” in August.

Aug 29, 2014

Analysis – Draghi dials R for Reform. Line is busy

FRANKFURT (Reuters) – Two years ago, euro zone government leaders hung on Mario Draghi’s every word. Now the European Central Bank chief is struggling to get through to them. What has happened to ‘Super Mario’s’ mojo?

For financial markets, Draghi’s words still count. But therein lies a problem – his promise in 2012 to do “whatever it takes” to save the euro has reassured investors and driven down government borrowing costs to near record lows.

Aug 29, 2014

Draghi dials R for Reform. Line is busy

FRANKFURT (Reuters) – Two years ago, euro zone government leaders hung on Mario Draghi’s every word. Now the European Central Bank chief is struggling to get through to them. What has happened to ‘Super Mario’s’ mojo?

For financial markets, Draghi’s words still count. But therein lies a problem – his promise in 2012 to do “whatever it takes” to save the euro has reassured investors and driven down government borrowing costs to near record lows.

Aug 25, 2014

About-face for ECB’s Draghi as he seeks to jolt euro zone into life

FRANKFURT (Reuters) – Prodding governments to do more to boost demand and hinting at European Central Bank action to go along with it marks a major shift in ECB chief Mario Draghi’s euro zone policy away from a focus on austerity toward reviving growth.

In a landmark speech on Friday, the ECB president said it would be “helpful for the overall stance of policy” if fiscal policy could play a greater role alongside the ECB’s monetary policy, adding: “and I believe there is scope for this”.

    • 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."
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