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Jun 6, 2012

ECB to keep pressure on governments, could signal rate cut

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.

May 18, 2012

Police detain 400 “Blockupy” activists in Frankfurt

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.

May 10, 2012

Bundesbank steels for higher inflation, ECB ready to act

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.

May 10, 2012

Bundesbank may live with higher German inflation

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.

Apr 17, 2012

German ZEW index rises unexpectedly in April

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

Apr 2, 2012

ECB on hold as growth, inflation go separate ways

FRANKFURT (Reuters) – Persistently high inflation will prevent the European Central Bank from doing anything new on Wednesday to prop up the euro zone’s shaky economic recovery, even with renewed worries about its fourth-largest economy, Spain.

While ECB President Mario Draghi has said that the worst of the debt crisis is over, resurgent concern about Spain and questions about whether Portugal will need a second bailout remain.

Mar 28, 2012

Banks buy bonds with ECB cash, lend less to firms

FRANKFURT/LONDON, March 28 (Reuters) – Banks cut lending to
euro zone companies in February while those in Spain and Italy
stocked up on government bonds, suggesting the flood of cash
that the European Central Bank has pumped out has yet to bolster
flagging businesses in the wider economy.

The ECB funnelled over 1 trillion euros into the financial
system with twin ultra-cheap funding operations in December and
February to head off a credit crunch that risked exacerbating
the euro zone crisis and threatening the currency bloc’s future.

Mar 26, 2012

German housing boom won’t bust bank’s rate strategy

FRANKFURT, March 26 (Reuters) – A sharp rise in German
property prices is worrying some European Central Bank
policymakers but the sudden upswing is unlikely to push the ECB
into raising interest rates.

The ECB sets rates for all 17 euro zone members no matter
what state their individual economies are in, and Germany’s
mini-boom is more than balanced by depressed housing markets
elsewhere, notably Spain and Ireland.

Mar 15, 2012
via MacroScope

Reading the ECB runes, March edition


Economists seeking insight into the kind of analysis the European Central Bank is using to support its policy decisions can get hints from its monthly bulletin. Not for everyone, but here’s what is in March’s edition:

* The effective exchange rates of the euro – revised trade weights in the light of global economic integration

Mar 5, 2012

ECB to signal policy lull as debt storm calms

FRANKFURT (Reuters) – The European Central Bank is likely to signal on Thursday that it has done all it intends to do to fight the euro zone crisis, putting the onus back on governments after cutting interest rates and flooding the market with cash in recent months.

Banks have been shored up and government debt markets stabilized by two ECB cash injections totaling more than a trillion euros since December, steps which ECB President Mario Draghi says have averted a major credit crunch.

    • 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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