FRANKFURT, July 5 (Reuters) – The European Central Bank is
widely expected to cut borrowing costs to a record low on
Thursday to support a deteriorating euro zone economy and
complement measures agreed by government leaders last week to
tackle the bloc’s debt crisis.
Economic surveys released on Wednesday suggested even euro
zone powerhouse Germany is entering a modest downturn and
investors want the ECB to take action. The consensus forecast is
for a 1/4-percentage point cut in its main interest rate.
BERLIN/FRANKFURT (Reuters) – There is nothing to stop the European Central Bank cutting interest rates further, a senior policymaker said on Wednesday, adding to expectations it could act as soon as next week to counter dimming growth prospects and help tackle the euro zone crisis.
Executive Board member Peter Praet’s intervention followed his colleague Benoit Coeure, who said last week cutting rates was an option and one that would be discussed at the ECB’s July 5 meeting.
Jens Weidmann, Christian Noyer, Yves Mersch and the rest of the ECB’s Governing Council might want to start looking over their shoulders - Mario Draghi is now asking school pupils how the bank should set its policies.
Star secondary-school pupils from all over the Europe gathered in Frankfurt on Wednesday to display their monetary policy skills and received high praise from Draghi.
MILAN/FRANKFURT June 20 (Reuters) – A call for euro zone
bailout funds to buy government debt of countries like Spain
and Italy is a long way from being heeded and even if it was, is
unlikely to win over investors unless the European Central Bank
also steps in decisively.
At a G20 summit in Mexico on Tuesday, Italian Prime Minister
Mario Monti proposed the bloc’s two rescue funds intervene to
help his country service its sovereign debt.
MANNHEIM, Germany (Reuters) – German analyst and investor morale sank in June at its fastest rate since October 1998 on worries about the health of the Spanish banking sector and uncertainty over the Greek election outcome, a survey showed on Tuesday.
The main reading from the ZEW think tank’s monthly poll of economic sentiment fell to -16.9, undershooting even the weakest forecast in a Reuters poll of 42 economists. The data adds to signs that Germany, Europe’s paymaster and growth engine, is beginning to feel the bloc’s pain.
FRANKFURT, June 6 (Reuters) – The European Central Bank is
expected to hold back from policy moves when it meets on
Wednesday, instead urging governments to address the euro
zone’s crisis, but it could indicate a readiness to cut interest
rates as early as next month given a weakening economy and
Spain’s banking troubles.
The ECB is widely seen as the only institution capable of
immediate action on behalf of the currency bloc, raising
pressure on the bank to announce new measures after its meeting
- which will be held a day earlier than usual due to a holiday.
FRANKFURT, May 18 (Reuters) – German police said they
detained 400 anti-capitalist protesters in Frankfurt on Friday
for defying a ban on demonstrations against austerity policies
implemented to tackle the intensifying euro zone debt crisis.
The demonstration in the German financial capital was part
of a four-day-long “Blockupy” protest, due to run until
Saturday, against capitalism and swingeing austerity measures.
FRANKFURT/VIENNA (Reuters) – The European Central Bank is ready to raise interest rates when inflation risks arise, a top ECB policymaker said on Thursday as a survey pointed to stubbornly high prices this year and the Bundesbank signalled it may live with higher German inflation.
Financial markets are looking to the ECB to take further steps to stem the euro zone crisis but ECB policymakers speaking at a conference in Vienna focussed more on being ready to unwind the extraordinary support they have taken than any fresh action.
FRANKFURT/VIENNA, May 10 (Reuters) – The Bundesbank is
preparing to stomach higher German inflation than it likes,
above the European Central Bank’s target level, because of the
euro zone crisis, a source at the central bank said on Thursday.
Structural reforms in peripheral euro zone states would
improve their competitiveness and under this scenario Germany
could have an inflation rate above the bloc’s average, the bank
said in a statement for a parliamentary hearing on Wednesday.
MANNHEIM, Germany, April 17 (Reuters) – German analyst and
investor sentiment rose unexpectedly in April to its highest
level since June 2010, a survey showed on Tuesday, bolstering
hopes that Europe’s biggest economy is recovering from a weak
The Mannheim-based ZEW economic think tank’s monthly poll of
economic sentiment rose to 23.4 from 22.3 in March, beating a
consensus forecast in a Reuters poll of analysts for a fall to