ECB’S SCHNABEL HINTS AT FURTHER GEOGRAPHIC TARGETING OF PEPP PURCHASES
— ECB to Deviate from Capital Key For Countries Facing ‘Severe Risks of Fragmentation’ By Laurie Laird LONDON (MaceNews) – The European Central Bank will continue to bend its rules on the geographic allocation of emergency sovereign bond purchases, deviating from its capital key to support nations in financial distress. “We raise the share of […]
ECB EXPANDS BOND BUYING PROGRAM, DECLINES FURTHER EASING MEASURES
By Laurie Laird LONDON (MaceNews) – The European Central Bank expanded its emergency asset purchase program but declined to activate any further measures in what it calls its “policy toolkit,” despite forecasting a fall in inflation to just above zero. The ECB’s pandemic emergency purchase program, or PEPP, will increase by €600 billion to €1.35 […]
ECB’S LAGARDE: EUROZONE ECONOMY LIKELY TO SHRINK 8-10% IN 2020
By Laurie Laird LONDON (MaceNews) – The eurozone economy could shrink by as much as 10% this year, according to the European Central Bank president, a more shallow contraction than envisioned under the bank’s most severe forecast scenario. Addressing an online European youth event, Christine Lagarde predicted the eurozone will suffer a downturn “about double” […]
ECB’S LANE: ECB OPEN TO EXPANDING SIZE, COMPOSITION OF CORONAVIRUS BOND BUYING PROGRAM
LONDON (MaceNews) – The chief economist of the European Central Bank raised the prospect of expanding the size and scope of the bank’s emergency pandemic program, adopting a more dovish tone than he had just over a week ago. “We are fully prepared to further adjust our instruments … [including] increased the size of the […]
ECB SEES POSSIBLE 15% SLUMP IN Q2; LEAVES RATES ON HOLD
By Laurie Laird LONDON (MaceNews) – The European Central Bank expanded its emergency liquidity program following Thursday’s governing council meeting, but declined to reduce interest rates, despite the eurozone suffering its biggest-ever downturn in the first quarter. “We are facing an economic contraction of a magnitude and speed … unprecedented in peacetime,” said ECB President […]
INCOMING ECB HEAD LAGARDE URGES EUROPEAN STRUCTURAL REFORM
By Laurie Laird FRANKFURT (MaceNews) – The incoming president of the European Central Bank stressed the importance of structural reform and expansionary fiscal policy in her final public speech before taking over the reins of the bank, echoing the increasingly-urgent calls of her predecessor, Mario Draghi. Addressing leaders of Europe’s financial and political worlds, Christine Lagarde […]
ECB SETS NEW STIMULUS PACKAGE BUT QE SHORT OF MARKET EXPECTATION
By Laurie Laird FRANKFURT (MaceNews) – The European Central Bank unleashed a fresh wave of stimulus following Thursday’s rate-setting meeting, although the Bank’s renewed quantitative easing package fell short of expectations, with some council members dissenting from a decision to resume quantitative easing. The interest rate on the ECB’s deposit facility will fall by 10 […]
ECB SIGNALS LOWER RATES AHEAD, TO CONSIDER NEW QE
By Laurie Laird FRANKFURT (MaceNews) – The European Central Bank signaled its intention to loosen monetary policy in response to the slowing euro zone economy, adding the possibility of lower interest rates to its forward guidance and pledging to examine a new round of quantitative easing. In a statement issued after Thursday’s governing council meeting, […]
ECB EYES NEW STIMULUS TO BOOST WEAKENING EURO ZONE ECONOMY
By Laurie Laird VILNIUS (MaceNews) -The European Central Bank has acknowledged the weakening euro zone economy, extending its forward guidance and reiterating the governing council’s pledge to deploy a range of unconventional measures should conditions falter further. The ECB kept its deposit facility rate at -0.4% at its latest governing council meeting, and vowed to […]
HIGHLIGHTS OF ECB’S DRAGHI Q&A: ‘MUST BE PREPARED’
–Markets Seem to See ‘Something Larger Than Simply Trade Disputes’ (MaceNews) – Here are some highlights of European Central Bank President Mario Draghi’s question and answer session Thursday: –Markets seem to see “something bigger than simply trade disputes.” We “have to take this reading seriously and be prepared.” –Don’t see signs of de-anchoring of inflation […]