FRANKFURT, Jan 22 (Reuters) – The European Central Bank
appears content to sit on its hands in the hope recovery unfolds
as neither of the red flags which could prompt it to act are
waving vigorously enough to worry it.
Earlier this month, ECB President Mario Draghi stepped up
his rhetoric, saying the central bank “strongly emphasised” its
accommodative stance and would take “decisive action” if
inflation undershoots or money market rates tighten in a way
that tightens policy by stealth.
FRANKFURT, Jan 21 (Reuters) – Excess liquidity in euro zone
money markets is set to increase later this week after banks
took more cash from the European Central Bank, putting downward
pressure on short-term money-market rates.
Short-term interbank rates have climbed in recent weeks due
to falling excess liquidity – money banks have beyond what they
need for their day-to-day operations – and have reached levels
where they are putting pressure on the ECB to stop the rise.
MANNHEIM, Germany (Reuters) – German analyst and investor sentiment unexpectedly cooled in January on slightly lower expectations for private consumption, but it remained near the highest level in nearly eight years.
The monthly ZEW think-tank survey, released on Tuesday, showed, however, that investors’ assessment of current conditions rose more than expected. ZEW said this confirmed high expectations of recent months for Europe’s largest economy.
FRANKFURT, Jan 9 (Reuters) – The European Central Bank said
on Thursday it was determined to use all available tools to
prevent inflation falling too low, but left interest rates
unchanged despite price rises slowing further into a “danger
zone” below 1 percent.
ECB President Mario Draghi told a news conference after a
monthly rate-setting meeting that the 18-nation euro zone may
experience a prolonged period of low inflation before a gradual
return to the ECB’s target level of just below 2 percent.
FRANKFURT (Reuters) – The European Central Bank left interest rates at a record low on Thursday, holding off fresh action for now while it assesses whether it needs to respond to cost-of-living numbers weak enough to raise concerns about deflation.
The decision to hold the main rate at 0.25 percent, which was widely expected, came despite news earlier this week that euro zone inflation slowed to 0.8 percent in December – well below the ECB’s target of just below 2 percent.
FRANKFURT, Jan 9 (Reuters) – The European Central Bank is
likely to keep interest rates on hold on Thursday while
reminding the market that it will ease policy if inflation stays
too low or money market conditions tighten too much.
ECB President Mario Draghi will reassure investors that the
bank will not tolerate inflation holding persistently in the
“danger zone” below 1 percent.
FRANKFURT (Reuters) – Lending to companies in the euro zone contracted at the fastest pace on record in November, piling pressure on the European Central Bank to do more to revive the currency bloc’s economy.
The ECB has cut interest rates to a record low, pumped extra liquidity into the banking system and announced a yet-to-be-used government bond purchase program, but the measures have so far not reached all corners of the euro zone evenly.
MANNHEIM, Germany (Reuters) – German analyst and investor sentiment leapt in December, hitting its highest level in nearly eight years and suggesting growth in Europe’s largest economy will pick up next year.
The Mannheim-based ZEW economic think tank’s monthly poll of economic sentiment, published on Tuesday, climbed to 62.0 from 54.6 in November.
FRANKFURT (Reuters) – Sabine Lautenschlaeger, a German bank supervision expert with no monetary policy record, is an early favorite to replace Joerg Asmussen on the ECB’s executive board after his decision to leave early to spend more time with his family.
Lautenschlaeger, 49, who was praised by German Finance Minister Wolfgang Schaeuble on Monday as a worthy candidate to replace Asmussen, is vice president of the Bundesbank and analysts said her appointment could herald a more united, hawkish German stance within the ECB’s rate-setting council.
(Reuters) – The final version of the Volcker rule to ban banks from gambling with their own money is “significantly different” from the originally proposed version, making its impact on the markets difficult to gauge, a top U.S. securities regulator said on Monday.
Regulators will release the long-awaited final version of the Volcker rule on Tuesday, following two years of consultation over a rule which Wall Street sees as one of the harshest elements of the post-financial crisis crackdown.