FRANKFURT, March 7 (Reuters) – The European Central Bank
will eschew dramatic action on Thursday to help Italy or other
euro zone countries caught up in its backwash, despite the
threat of political turmoil in Rome reigniting the bloc’s debt
The ECB is expected to hold its interest rates at a
record-low 0.75 percent and keep its growth and inflation
forecasts largely unchanged at its monthly meeting.
MUNICH (Reuters) – The European Central Bank is not about to remove the crisis measures it deployed to help the ailing euro zone economy, the central bank’s chief said on Wednesday.
“Our monetary policy remains accommodative,” ECB President Mario Draghi said in the question-and-answer session after a speech at the Catholic Academy of Bavaria.
FRANKFURT (Reuters) – Depositors in Cypriot banks should not be forced to take losses across the board as part of a euro zone rescue of Cyprus, ECB policymaker Benoit Coeure said, but he did not rule out making the biggest depositors share some of the burden.
Speaking at a Reuters Summit on the future of the euro zone, Coeure said it was essential to ensure that Cypriot debt is reduced to a manageable level and that the cost of the bailout is fairly shared and not just footed by taxpayers.
FRANKFURT (Reuters) – The European Central Bank’s bond-purchase program is “not a nuclear deterrent” and is available for use, ECB policymaker Benoit Coeure said, with Ireland and Portugal candidates to tap the plan when they gain more access to debt markets.
The ECB launched the program – dubbed Outright Monetary Transactions (OMT) – last September to counter investor fears of a euro zone break-up but it has yet to deploy it, with some policymakers at the bank preferring to keep it under wraps.
FRANKFURT, Feb 22 (Reuters) – Banks will repay the European
Central Bank 61.1 billion euros in the second of two 3-year
loans they took a year ago, handing back less than expected in a
sign much of the euro zone financial system is still reliant on
The ECB said on Friday that 356 banks had decided to repay
funds from the second loan at the earliest opportunity, on Feb.
27. A total of 800 banks tapped the operation in February 2012.
MANNHEIM, Germany, Feb 19 (Reuters) – Optimism that the
worst of the euro zone debt crisis is over has helped German
investor sentiment soar to its highest level in nearly three
years this month.
In the latest sign that Europe’s largest economy is bouncing
back after a dismal end to 2012, the Mannheim-based ZEW think
tank said on Tuesday its monthly investor and analyst poll of
economic sentiment rose to 48.2 points in February from 31.5 in
FRANKFURT, Feb 18 (Reuters) – German banks’ use of European
Central Bank crisis funding dropped by a third in January from
the previous month, a further sign that banks in the heart of
the euro zone are returning to money markets after last year’s
Banks in countries on the periphery of the 17-member bloc
still rely on central bank lending, which, while at a record-low
interest rate of 0.75 percent, is above market rates. The
divergence complicates the ECB’s interest rate-setting plans.
HELSINKI, Feb 12 (Reuters) – The Group of 20 industrialised
nations should reaffirm their commitment to floating exchange
rates at their upcoming Moscow meeting, European Central Bank
Vice President Vitor Constancio said on Tuesday.
The G20 accounts for 90 percent of the world’s economy and
two-thirds of its population. Russia currently heads the group,
which has been split between borrowers seeking to grow out of a
debt trap and surplus countries keener on austerity.
FRANKFURT (Reuters) – Banks began early repayment of crisis funds to the European Central Bank on Wednesday, shrinking the ECB’s balance sheet while the world’s other big central banks are still spending to support their economies.
Combined with lackluster demand for weekly funding, it helped boost the euro to its highest level against the dollar since November 2011.
FRANKFURT/DUBLIN (Reuters) – The European Central Bank appears happy to leave Ireland and Portugal to fend for themselves, holding off directly buying the bail-out recipients’ debt unless markets turn sour again.
Both Ireland and Portugal have re-entered sovereign bond markets recently, but the ECB has left investors and governments guessing about when it could use its new bond-buying programme, known as Outright Monetary Transactions (OMT).