Central banks expand dlr operations, bank shares jump
FRANKFURT, Sept 15 (Reuters) – Major central banks around
the world will cooperate to offer three-month U.S. dollar loans
to commercial banks in order to prevent money markets from
freezing up because of Europe’s sovereign debt crisis.
The European Central Bank said on Thursday it would hold
three fixed-rate operations between October and December to
offer banks as many dollars as they needed, in order to ease any
funding crunch in the year-end period. (for statement, click
)
Central bankers see no global recession
BASEL, Switzerland, Sept 12 (Reuters) – Economic growth is
slowing but there is no sign of a worldwide recession, according
to global central bankers who said on Monday they had no plans
for concerted action.
Central banks stood ready to provide liquidity as needed and
there was no sign of deflation in developed economies,
Jean-Claude Trichet, speaking as chair of talks at a Bank for
International Settlements meeting, also said.
There’s life in the old boy yet
He may be leaving the European Central Bank in under two months but Jean-Claude Trichet’s tenacious performance at Thursday’s ECB news conference showed there is still fire in the belly of Mr. Euro.
Rattled by comments from a German journalist that, behind closed doors his country was starting to think about ditching the euro and going back to the deutsche mark, Trichet exploded. (for video clip of rant click http://reut.rs/olO9V7)
ECB signals rates on hold, nervous about economy
FRANKFURT, Sept 8 (Reuters) – The European Central Bank
signalled on Thursday that its interest rate rise cycle had been
halted, saying euro zone inflation risks were no longer skewed
to the upside and economic growth would be slow at best.
“We expect the euro area economy to grow moderately, subject
to particularly high uncertainty and intensified downside
risks,” President Jean-Claude Trichet told a news conference
after the ECB left rates at 1.5 percent, following hikes in
April and June.
True Finns’ legacy risks burning Greece aid plan
Finns are quickly shedding their image as consensus-seekers who shy away from open conflict. They are sticking to their guns on seeking collateral from Greece in return for participation in a second aid package for Athens, even though their demands risk jeopardising the whole Greek bailout.
After the populist anti-euro True Finns made big gains in April elections, the new Finnish government and its finance minister, Social Democrat Jutta Urpilainen, made clear the Nordic country would not take part in any aid plan without receiving collateral. Finland, which needs parliamentary approval to join the deal, must take part or else the whole package will be derailed. On Tuesday, Urpilainen announced that an agreement over collateral was in place.
Euro zone bond debate raises pressure on Merkel
BERLIN/FRANKFURT (Reuters) – Leading German business groups called on Monday for joint euro zone bond issuance, despite their government’s opposition, and the European Central Bank showed its intent to defend Italy and Spain.
The ECB spent a record 22 billion euros ($31 billion) on government debt last week, to try to halt the spread of the euro zone debt crisis.
Price stability key to ECB bond buys?
Price stability remains the only needle in the compass for the European Central Bank, even when it is buying government bonds, the 17-country bloc’s central bank strived to argue on Sunday.
ECB President Jean-Claude Trichet said, in the statement announcing extension of its bond-buying programme, that the decision was made to keep inflation at an acceptable level.
ECB seen halting rate hike cycle, pressured on bond buys
FRANKFURT (Reuters) – An economic slowdown and debt market turmoil mean the European Central Bank will probably hit ‘pause’ on its interest rate raising cycle for several months and may even signal on Thursday a readiness to buy bonds again.
The ECB meeting, which began at 0700 GMT, comes against a backdrop of slowing growth in the euro zone core and the spread of the bloc’s debt crisis to G7 economy Italy — a development that has alarmed policymakers and put the bank’s dormant government bond-buying plan back in the spotlight.
Euro markets steady ahead of Spain auction, ECB
FRANKFURT/MADRID, Aug 4 (Reuters) – Euro zone sovereign bond
markets steadied on Thursday ahead of a crucial European Central
Bank policy-setting meeting that investors hope will signal a
more aggressive approach to fighting the currency area’s debt
crisis.
Yields of Italian and Spanish 10-year bonds fell in early
trading before an auction in which Spain planned to sell up to
3.5 billion euros ($5 billion) of government paper after crisis
telephone consultations with European Union authorities.
ECB to halt rate hike cycle, pressured on bond buys
FRANKFURT, Aug 4 (Reuters) – An economic slowdown and debt
market turmoil mean the European Central Bank will probably hit
‘pause’ on its interest rate raising cycle for several months
and may even signal on Thursday a readiness to buy bonds again.
The ECB meeting, which began at 0700 GMT, comes against a
backdrop of slowing growth in the euro zone core and the spread
of the bloc’s debt crisis to G7 economy Italy — a development
that has alarmed policymakers and put the bank’s dormant
government bond-buying plan back in the spotlight.
-
About Sakari
-
Follow Sakari
