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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.

Oct 15, 2013

ECB’s Praet says euro fx rate within normal range

MUNICH (Reuters) – The euro is trading within a relatively normal band in foreign exchange markets at the moment, European Central Bank Executive Board member Peter Praet said on Tuesday, indicating it is not a great worry for the central bank.

Praet, who has the powerful economics portfolio within his remit, also said that U.S. budget problems were not affecting the central bank’s monetary policy yet.

Oct 15, 2013

German investor sentiment rises on brighter euro outlook

MANNHEIM, Germany, Oct 15 (Reuters) – German analyst and
investor sentiment rose unexpectedly in October as tentative
signs of a euro zone recovery brightened the outlook for
Europe’s largest economy.

The Mannheim-based ZEW economic think tank’s monthly poll of
economic sentiment, published on Tuesday, rose to 52.8 in
October from 49.6 in the previous month, its highest level since
April 2010. A Reuters poll of 36 economists had forecast the
index would remain unchanged.

Oct 9, 2013

Asmussen says ECB can cut rates, take other options

FRANKFURT (Reuters) – The European Central Bank still has room to cut interest rates or use non-traditional measures to ease policy and aid the euro zone economy, ECB Executive Board member Joerg Asmussen said on Wednesday.

Non-standard options include offering banks more long-term loans, stopping mopping up funds to offset the ECB’s bond purchases or reducing reserve requirements, he said.

Sep 26, 2013

Fed needs better way to signal policy, officials say

, Sept 26 (Reuters) – The
Federal Reserve confused financial markets over scaling back its
bond buying, three top officials said on Thursday, with one
arguing the central bank should link tapering to drops in the
jobless rate and another calling for a broad remake of strategy.

Fed Board Governor Jeremy Stein said he would have been
comfortable with acting at the Sept. 17-18 meeting, and the
decision to keep buying bonds at an $85 billion monthly pace had
been, for him, a “close call”.

    • 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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