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Dec 5, 2013

Draghi says ECB ready to act, but unsure how

FRANKFURT, Dec 5 (Reuters) – The European Central Bank is
ready to take fresh policy action to support the euro zone
economy but has not yet worked out a detailed plan of which
policy tool to use when, the bank’s president said on Thursday.

After its final policy meeting of 2013, Mario Draghi also
said the ECB will only offer banks a fresh batch of long-term
loans if it is confident they will lend on the funds, putting a
question mark over the tool markets expect the ECB to use next.

Dec 5, 2013

ECB sees prolonged lack of inflation, ready to act

FRANKFURT (Reuters) – Euro zone inflation will stay well below target for the next two years and the European Central Bank is ready to act if necessary to lift a listless economy, it said on Thursday.

The ECB left its key interest rate at 0.25 percent at its last policy meeting of the year, choosing not to follow through on November’s surprise cut.

Dec 3, 2013

ECB seen on hold, new forecasts key to next move

FRANKFURT, Dec 3 (Reuters) – The European Central Bank is
likely to hold off any fresh policy action on Thursday, but new
staff forecasts will be in focus for signs of prolonged price
weakness that could lead it to act again next year.

After surprising markets last month with a cut in rates to a
new record low, ECB President Mario Draghi said the euro zone
“may experience a prolonged period of low inflation” and that
the ECB was ready to consider using all available policy tools.

Nov 28, 2013

Euro zone loans contraction increases pressure on ECB

FRANKFURT, Nov 28 (Reuters) – A contraction in loans to
households and companies in the euro zone quickened in October,
piling pressure on the European Central Bank to do more to buoy
the euro zone’s weak recovery.

The ECB cut its main refinancing rate earlier this month to
0.25 percent, but the euro zone central bank’s record low
interest rates are not feeding through evenly to the real
economy in all corners of the currency bloc.

Nov 26, 2013

Mersch leads hawks in stressing ECB’s policy limits

FRANKFURT (Reuters) – The European Central Bank’s scope of action is limited, Executive Board member Yves Mersch said on Tuesday, leading resistance from the bank’s hawks to fresh policy measures to support the economy.

With euro zone inflation running at 0.7 percent, well below the ECB’s target of just under 2 percent, a raft of ECB speakers have said over the last week they are open to taking fresh steps to aid a recovery.

Nov 19, 2013

ECB, urged by OECD to buy assets, says all options on the table

BRUSSELS/FRANKFURT (Reuters) – All policy options are open for the European Central Bank and it has discussed the broad possibility of asset buying, its vice-president said, as the OECD urged it to consider such action to aid a weak recovery.

Paris-based think tank the Organization for Economic Cooperation and Development called on the ECB on Tuesday to emulate U.S.-style quantitative easing, or QE, to help the single currency area avoid a Japanese-style deflationary spiral.

Nov 19, 2013

OECD urges ECB to buy euro zone assets to revive economy

BRUSSELS/FRANKFURT, Nov 19 (Reuters) – A leading
international think-tank urged the European Central Bank on
Tuesday to loosen the purse strings further and buy euro zone
government and corporate bonds accelerate a weak recovery.

The Paris-based Organisation for Economic Cooperation and
Development (OECD) called on the ECB to emulate U.S.-style
quantitative easing (QE) to help the single currency area avoid
a Japanese-style deflationary spiral.

Nov 18, 2013

ECB has tools to ease but must take medium-term view: Nowotny

VIENNA/FRANKFURT (Reuters) – There is no need for the European Central Bank to respond with immediate policy reactions to below-target inflation, an ECB Governing Council member said on Monday.

Another said the worst of the euro zone’s economic woes are behind it.

The ECB cut interest rates to a record low earlier this month and said it could take them lower still to prevent the euro zone’s recovery from stalling after inflation tumbled to 0.7 percent – well below its target of just under 2 percent.

Nov 8, 2013

ECB set to clash with Germany over fund for banks clean-up

FRANKFURT, Nov 8 (Reuters) – Leaving countries to cope with
their problem banks alone would defeat the point of banking
union, the ECB said on Friday, putting it on a collision course
with Germany before crucial negotiations next week.

The remarks, issued in a legal opinion, represent a fresh
attempt to win over Germany’s reluctant finance minister
Wolfgang Schaeuble to a central tenet of banking union – the
creation of a single fund to cover the cost of bank failures
rather than leaving countries to foot the bill alone.

Oct 29, 2013

Strong euro leaves ECB divided over how to respond

FRANKFURT, Oct 29 (Reuters) – A rise in the euro to a
two-year high is complicating the European Central Bank’s policy
puzzle, and Governing Council members are at odds over how to

The appreciation is largely about dollar weakness due to
U.S. Federal Reserve policy, but the outcome for ECB
policymakers is concern that already subdued inflation will slow
further and a nascent economic recovery will falter.

    • 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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