ECB’S LAGARDE: ASSET PURCHASES MORE EFFECTIVE THAN RATE CUTS FOR NOW
By Laurie Laird LONDON (MaceNews) — The European Central Bank will continue to rely on asset purchases as its main policy tool, but is not averse to further rate cuts down the line, according to ECB President Christine Lagarde. Rate cuts “work better in certain circumstances … not necessarily in a crisis situation as we […]
BOE’S HASKEL PREPARED TO GREENLIGHT FURTHER UK STIMULUS
—Cites ‘Positive Evidence’ of Benefits of Sub-Zero Rates Outside UK By Laurie Laird LONDON (MaceNews) – A top UK rate-setter Monday expressed his willingness to approve a further loosening of monetary policy, noting the economic benefits of sub-zero interest rates in other jurisdictions. “I stand ready to vote for more stimulus measures should they be needed,” […]
BANK OF ENGLAND CHIEF ECONOMIST SEES NO CURRENT NEED FOR NEGATIVE RATES
–Haldane Heralds Rapid UK Rebound, Despite Soft Consumer Confidence By Laurie Laird LONDON (MaceNews) – A top Bank of England official Wednesday vigorously downplayed the need for sub-zero interest rates in the UK, citing an economic recovery that has far outpaced the Bank’s expectations. “At present, none of the conditions [that would necessitate negative rates] […]
ECB PRESIDENT DISCUSSES MERITS OF SYMMETRICAL INFLATION TARGETING
By Laurie Laird LONDON (MaceNews) – Europe’s top central banker Wednesday suggested that symmetrical inflation targeting could have merit in dispelling the low inflation environment suffered in advanced economies since the financial crisis. Addressing the ECB and its Watchers XXI conference in Frankfurt, ECB President Christine Lagarde noted that many central banks have explored a […]
Italy Fiscal Plan Sees 2020 Deficit 10.8%, GDP -9%, Debt To GDP 158% – Treasury Sources
By Silvia Marchetti ROME (MaceNews) – Italy’s government is expected to put forward on Wednesday a fiscal plan that sets the budget deficit at 10.8% of GDP this year and public debt at 158%, while the economy will contract by 9% on the pandemic impact, according to Treasury sources. Ruling coalition parties reached agreement on […]
BANK OF ENGLAND CHIEF CONTINUES TO REVIEW NEGATIVE RATES; DOWNPLAYS IMMINENT RATE CUT
By Laurie Laird LONDON (MaceNews) – The Bank of England is continuing to review the efficacy of negative interest in the UK, but the country’s leading central banker Tuesday downplayed the possibility of any policy change over the near term. The Bank is “doing the groundwork” on the benefit of sub-zero rates, but has “reached […]
EUROZONE ECONOMIC SENTIMENT SHOWS IMPROVEMENT BUT PACE SLOWS
By Marco Babic ZURICH (MaceNews) – Economic sentiment in the countries sharing the Euro improved in September, but at a slower pace than in previous months, the European Commission reported Tuesday. The Commission’s Economic Sentiment Indicator (ESI) rose to 91.1 in September, an improvement of 3.6 points from the 87.5 result in August. By comparison, […]
ECB’S SCHNABEL CALLS FOR A EURO CARBON TAX
— Chastises investors for under-pricing the risk of climate changeBy Laurie Laird LONDON (MaceNews) – A top European central banker Monday rebuked investors for under-pricing the risk of climate change and called for a global carbon price to challenge the ecological and financial harm presented by global warming. “A global climate price is the most […]
ECB’S LAGARDE UNVEILS NEW TRANSPARENCY MEASURES
–Gives no clues as to future monetary policy in an address to an EU committee By Laurie Laird LONDON (MaceNews) – Europe’s top central banker Monday promised greater transparency in its communications with the European Parliament, stepping up efforts to enhance public accountability following a rebuke from German court back in May. Effective immediately, the […]
BANK OF ENGLAND’S BAILEY SETS THE STAGE FOR RATE CUT
By Laurie Laird LONDON (MaceNews) – The UK’s top central banker sketched out the details of the Bank of England’s deliberations on sub-zero interest rates on Tuesday, dropping his heaviest hint yet that rates could fall into negative territory over the medium term. “We’ve got to work with the banks” to ensure that negative rates don’t […]