CNBC Comment: Why Draghi can’t relax this summer June 30, 2014 WHO’D be a central banker? As soon as you restore bond and equity markets to calm or even optimism, investors start fretting about something else. Most major Western economies have returned to economic growth, and countries that were causing sleepless nights just a couple of years ago, like Spain and Ireland, appear to be market [...]
Higher core Eurozone inflation may allow ECB to “wait and see” June 30, 2014 Inflation in the euro area has held steady in June, static at an annual rate of 0.5 per cent, according to data released by Eurostat. Fears over the disinflationary climate in the Eurozone prompted the European Central Bank (ECB) to take action this month, with president Mario Draghi delivering a package of measures aimed at [...]
The ECB’s new interest rate policy – what does it all mean? June 5, 2014 The European Central Bank has taken the bold decision to push the deposit rate from zero to minus 0.1 per cent, essentially meaning that Eurozone banks must pay the central bank to make deposits there. But what does this decision from ECB president Mario Draghi mean for everyone? Funding For Business Lending [...]
ECB easing must damage growth eventually: Let’s hope we’re not there yet June 5, 2014 THE EUROPEAN Central Bank (ECB) has cut its main interest rate to 0.15 per cent, and imposed an interest rate charge of 0.1 per cent upon banks leaving money in the ECB (as opposed to the traditional practice whereby central banks pay interest on such reserves). ECB governor Mario Draghi has also indicated a willingness [...]
Bank of England holds policy as investors await afternoon’s ECB statement June 5, 2014 They're still twiddling their thumbs over at the Bank of England. Policy has been left unchanged, with interest rates at their historic lows of 0.5 per cent, and asset purchases maintained at £375bn. No surprises there, with analysts widely forecasting we'd see nothing changed today. Minutes of the Monetary Policy Committee's last meeting revealed that [...]
Euro plummets as Draghi hints at rate cuts in June May 8, 2014 THE EUROPEAN Central Bank (ECB) gave the clearest signal yet of even further monetary easing yesterday, prompting a rapid drop in the euro. ECB president Mario Draghi said that the institution is now “comfortable with acting next time”, following his staff’s latest projections of the economic climate, which will be published early in June. The [...]
Keen Steen ruins yesterday’s tie guesses but Draghi’s not playing May 8, 2014 MARIO Draghi’s numero uno press man Michael Steen caused a storm on Twitter yesterday by posting a photograph of his boss ahead of a European Central Bank policy decision meeting, because it revealed the colour of his tie ahead of time. Each month people try to guess what colour the ECB president’s tie will be [...]
Mario Draghi knows about the tie guesses May 8, 2014 Earlier today, Mario Draghi’s numero uno press man Michael Steen caused a storm on Twitter by posting a photograph of Mr Draghi ahead of his European Central Bank policy decision meeting, because it revealed the colour of his tie ahead of time. To the uninitiated it might sound a bit loopy but each month [...]
Euro sinks as Draghi suggests action at next ECB meeting May 8, 2014 Signs of action from the European Central Bank has whacked the euro. President Mario Draghi has said that the central bank could act at its next meeting, in June, and it's whalloped the currency. Draghi's wording: "The governing council is comfortable about acting next time." The ECB is clearly aware of its inflation problem, with [...]
The ECB’s new press chief just killed the Draghi tie guesses game May 8, 2014 It's that Thursday of the month again, and finance Twitter is getting ready for the big event. Many would traditionally have spent the morning making their forecasts. Not on the subject of European Central Bank policy (their monthly decision is out at 12.00pm), but on what colour tie President Mario Draghi would be wearing at [...]