BOE’S BROADBENT DOWNPLAYS PROSPECTS OF UK RECOVERY IN H2
— Sees OBR forecast of 35% decline in output in Q2 as “not unreasonable”— Decision on expanded QE expected early next month By Laurie Laird LONDON (MaceNews) – A Bank of England deputy governor Monday endorsed a grim forecast of a massive economic contraction in the second quarter, but warned that a rapid recovery may […]
IMF WEO: CHINA TO ESCAPE PANDEMIC ECONOMIC DECLINES
WASHINGTON (MaceNews) – The following is IMF chief economist Gita Gopinath’s summary of the World Economic Outlook update published Tuesday outlining sharp declines in economic activity throughout much of the world with the notable exception of China, where the pandemic originated: The world has changed dramatically in the three months since our last update of […]
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 […]
ECB’S DRAGHI SEES ‘PERSISTENCE OF UNCERTAINTIES
–ECB Pledges to Hold Rates Steady to Yearend By Laurie Laird FRANKFURT (MaceNews) – The European Central Bank could ease the burden of negative interest rates on the region’s banks, raising concerns that prolonged weakness in the euro zone economy could require further stimulus measures, even the resumption and expansion of quantitative easing. The ECB […]
ECB: RATES HOLDING REST OF YR; EASES POLICY STANCE
By Laurie Laird FRANKFURT (MaceNews) – The European Central Bank adopted a markedly easier policy stance at Thursday’s governing council meeting, just months after terminating its multi-billion dollar quantitative easing programme, following a dramatic downward revision to its growth forecast for 2019. From September, the ECB will launch a new series of quarterly targeted longer-term […]
ECB ACKNOWLEDGES DOWNSIDE RISKS; POLICY UNCHANGED
–Euro Area Risks ‘Have Moved to the Downside’ By Laurie Laird FRANKFURT (MaceNews) – The European Central Bank said Thursday it has no immediate plans to loosen monetary policy, despite acknowledging a substantial loss of economic momentum in the euro zone and highlighting potential headwinds to the euro zone expansion. “The risks surrounding the euro […]
ECB: TO INVEST QE PROCEEDS BEYOND RATE RISE
By Laurie Laird FRANKFURT (MaceNews) – The European Central Bank Thursday confirmed its intention to end quantitative easing at year end, despite marked signs of weakness in the euro zone economy, but stressed a commitment to reinvesting proceeds of previous bond purchases over the medium term or longer. We intend to continue to reinvesting, in […]