Sakari's Feed
Mar 7, 2013

ECB offers no helping hand for Italy, holds course

FRANKFURT, March 7 (Reuters) – Markets have settled after
Italy’s fractured election result and any threat of contagion to
other euro members has been muted, European Central Bank
President Mario Draghi said on Thursday, suggesting the bank is
in no mood to act.

The 17-country bloc’s central bank discussed cutting
interest rates, but decided to keep them on hold, citing
positive economic survey indicators, which in turn suggest the
ECB is ready to keep rates at 0.75 percent barring the economy
taking another turn for the worse.

Mar 7, 2013

ECB holds rates, to stand firm on bond buys

FRANKFURT (Reuters) – The European Central Bank kept interest rates steady on Thursday and is likely to eschew dramatic action to help Italy or other euro zone countries, despite the threat of political turmoil in Rome reigniting the bloc’s debt crisis.

At its monthly policy meeting, the ECB held its main refinancing rate at a record-low 0.75 percent, in line with what the majority of economists in a Reuters poll had expected. The attention turns now to a 1330 GMT news conference, held by ECB President Mario Draghi, himself an Italian.

Mar 7, 2013

ECB to hold line on bond buys, keep rates at 0.75 pct

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.

Feb 27, 2013

ECB nowhere near exit from crisis measures: Draghi

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.

Feb 27, 2013

No broad “bail-in” for Cyprus depositors, ECB says

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.

Feb 27, 2013

Bond-buying plan is there to be used: ECB’s Coeure

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.

Feb 22, 2013

Banks repay less ECB crisis loans than expected

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
ECB funds.

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.

Feb 19, 2013

German investor morale soars to near 3-year high

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

Feb 18, 2013

Core Eurozone banks relying less on crisis funding

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
credit squeeze.

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.

Feb 12, 2013

ECB’s Constancio expects G20 floating FX commitment

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.

    • 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:
      Finnish, English, German, Swedish
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