BOE’S CUNLIFFE CONFIRMS NEGATIVE UK RATES REMAIN UNDER CONSIDERATION
By Laurie Laird LONDON (MaceNews) – The Bank of England is still considering the efficacy of sub-zero interest rates as it battles the economic shock of the coronavirus, a leading member of the bank’s rate-setting body said Tuesday. “Negative interest rates is one possible tool to support demand going forward,” said Sir Jon Cunliffe, deputy […]
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 […]
BANK OF ENGLAND’S SAUNDERS CALLS FOR MPC TO COMMIT TO FURTHER ASSET PURCHASES
External MPC Member Refuses to Be Drawn on Negative Interest Rates By Laurie Laird LONDON (MaceNews) – A Bank of England rate setter has urged the Monetary Policy Committee to commit to further asset purchases at its upcoming meeting, but refused to be drawn on the possibility of negative interest rates in the UK. Addressing […]
EXPECTATIONS LIFT EURO AREA ECONOMIC SENTIMENT IN MAY, EUROSTAT REPORTS
By Marco Babic ZURICH (MaceNews) – Economic sentiment for the countries sharing the euro improved slightly in May, recovering from historic lows the month before, as industry and consumer sentiment increased while the outlook in the services industry continued to decline, according to data released Thursday by Eurostat. The Economic Sentiment Index rose to 67.5 […]
BOE’S BAILEY HINTS THAT EXPANDED QE WILL PRECEDE ANY RATE CUT
By Laurie Laird LONDON (MaceNews) – Bank of England Governor Andrew Bailey Wednesday suggested that the UK central bank is likely to expand its quantitative easing program before embarking on any move to nudge interest rates into negative territory. “We have signaled that we stand ready to do more within the framework of policies we […]
BOE’S HALDANE SOUNDS CAUTIOUS NOTE ON NEGATIVE UK RATES
— Sees “Modest” Recovery in Recent Consumer Spending LONDON (MaceNews) – The Bank of England’s chief economist sounded a decidedly cautious note on the possibility of negative interest rates in the UK, just a week after BoE Governor Andrew Bailey confirmed that sub-zero rates are actively under review. “Reviewing and doing are different things,” said […]
IFO GERMAN BUSINESS SENTIMENT BETTER IN MAY AS LOCKDOWNS EASE
By Marco Babic VIENNA (MaceNews) – German business sentiment improved overall as a more positive view of future developments overcame a more pessimistic assessment of current conditions. It appears that expectations are improving as lockdown measures due to the coronavirus are being eased. Germany’s Ifo institute reported Monday that business sentiment improved to 79.5 in […]
BOE’S BAILEY ADMITS TO ‘CHANGING HIS POSITION;’ WON’T RULE OUT NEGATIVE LENDING RATES
By Laurie Laird LONDON (MaceNews) – Bank of England Governor Andrew Bailey declined Wednesday to rule out further reductions in lending rates, admitting that he has “changed his position” on sub-zero rates since mid-March. Facing a question on negative rates posed by Felicity Buchan, a Conservative Member of Parliament serving on the Treasury Select Committee, […]
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 […]
ZEW GERMAN EXPECTATIONS INDEX RISES AS INVESTORS SEE RECOVERY IN 2H
By Marco Babic VIENNA (MaceNews) – Expectations for Germany’s economy improved in May, rising to a reading of 51.0 from 28.2 the previous month while the assessment of current conditions fell slightly to -93.5 from -91.5, the ZEW institute said Tuesday. Markets were expecting the ZEW expectations index at about 33.5, and the current conditions […]