Sakari's Feed
Jun 6, 2013

ECB holds rates, expecting recovery soon

FRANKFURT, June 6 (Reuters) – The European Central Bank kept
its main interest rate on hold at a record low 0.5 percent on
Thursday as it waits to see whether early signs of stabilisation
in the euro zone will blossom into an economic recovery.

Economic data improved in May and ECB President Mario Draghi
said this week he still sees “a very gradual recovery” starting
later this year, taking pressure off the ECB to act again, as it
had promised to do if necessary after cutting rates in May.

Jun 6, 2013

ECB seen holding rates as it waits for signs of euro zone recovery

FRANKFURT (Reuters) – The European Central Bank is expected to keep its main interest rate at a record low 0.5 percent on Thursday but tweaks to its economic forecasts may give investors a steer on the future direction of policy.

The euro zone’s central bank cut its main rate last month and signaled it was ready to do more should a recovery not materialize in the second half of the year as it expects.

Jun 6, 2013

ECB seen holding rates as it waits for euro zone recovery

FRANKFURT (Reuters) – The European Central Bank is expected to keep its main interest rate at a record low 0.5 percent on Thursday but tweaks to its economic forecasts may give investors a steer on the future direction of policy.

The euro zone’s central bank cut its main rate last month and signaled it was ready to do more should a recovery not materialize in the second half of the year as it expects.

May 29, 2013

ECB says bank stress has eased but warns of market ‘disconnect’

FRANKFURT (Reuters) – Tensions in the euro zone’s financial system have eased, but risks remain and governments and banks must keep strengthening the banking sector, the European Central Bank said on Wednesday.

The main risks are closely related to economic growth, and a delay to the end of the recession in the 17-country bloc would also increase risks to banks’ health.

May 29, 2013

Euro zone private loans contract, pressuring ECB to act

FRANKFURT (Reuters) – Loans to the euro zone’s private sector contracted for the 12th month in a row in April, raising pressure on the European Central Bank to take fresh policy action to help lift the bloc out of recession.

Loans fell 0.9 percent from the same month a year ago, ECB data showed on Wednesday, a slightly bigger fall than the mid-range forecast for a drop of 0.7 percent in a Reuters poll of economists. EUM3PC=ECI

May 22, 2013

Target2 charts progress since Draghi’s save the euro pledge

FRANKFURT, May 22 (Reuters) – Almost a year after ECB
President Mario Draghi vowed to do whatever it takes to save the
euro, a key indicator of euro zone tension is much diminished
and economic recovery will likely bring further improvement.

Little heard of before the debt crisis exploded, the
currency area’s Target2 payments system which settles
cross-border payments became big news as some economists said
its imbalances – close to a trillion euros at their peak – posed
a grave risk to the bloc.

May 14, 2013

German investor morale rise points to timid recovery

MANNHEIM, Germany (Reuters) – German analyst and investor sentiment edged up in May after dropping sharply in the previous month, suggesting the euro zone’s largest economy is overcoming concerns over a flare-up in the bloc’s debt crisis and is back on track to a timid recovery.

Economists said the rise was considerably weaker than they had expected, probably due to the currency bloc’s weak economy weighing on morale, but it still pointed in the right direction.

May 13, 2013

ECB’s Visco: negative deposit rates would be effective

FRANKFURT (Reuters) – Cutting the European Central Bank’s deposit rate below zero would be an effective way to help the euro zone economy, ECB policymaker Ignazio Visco was quoted as saying on Monday, sending the euro lower.

Taking the deposit rate into negative territory would mean the ECB charging commercial banks for holding their money overnight, something ECB President Mario Draghi has said the central bank was “technically ready” to do.

May 8, 2013

ECB says has tools left to act if needed

AACHEN, Germany/BRUSSELS, May 8 (Reuters) – The European
Central Bank still has room to manoeuvre should the euro zone
economy continue to worsen after it cut interest rates to a new
record low last week, ECB policymakers said on Wednesday.

The ECB cut its main rate to 0.5 percent last Thursday.

Yves Mersch, a member of the ECB’s six-man Executive Board,
said the bank still had tools at its disposal, but added that it
could only spur lending to small euro zone companies in
conjunction with other European institutions.

May 2, 2013

ECB set for rate cut as inflation falls sharply

FRANKFURT (Reuters) – The European Central Bank is likely to cut the main euro zone interest rate at its monthly meeting on Thursday as the bloc’s economy has weakened further.

Since the last policy meeting on April 4, there have been few signs of the economy returning to growth, threatening the recovery which the ECB has said it expects to start in the second half of this year.

    • About Sakari

      "I am part of the Reuters team covering the European Central Bank. Before moving to Frankfurt in early 2009, I was based in Helsinki, where I wrote about the Finnish economy and paper industry."
      Joined Reuters:
      2006
      Languages:
      Finnish, English, German, Swedish
    • Contact Sakari

    • Follow Sakari