The ECB cut basic rates last week to proceed with verbal interventions this week as well. Mario Draghi said that they are ready to cut interest rates again if needed and they will accommodate the policy to the data that arrives from the euro-area economy in the coming weeks. The Governing Council allegedly consider openly…
Euro zone finance ministers backed a 10 billion euro bailout for Cyprus and the European Commission would try to help the island’s economy grow again with better use of EU structural funds. First tranche of 10 billion euro will arrive into the island in mid-May. Cyprus will have to find another 13 billion euro by…
Outcome of Italian elections has caused a chaos within the Eurozone. European leaders were honestly sad because of stalemate political situation in Italy. You could see during first days of the week how sentiment and not fundamentals drive the European markets what is nothing extraordinary. It is just interesting how present world operates. I still…
At Bratislava´s meeting the Governing Council of the ECB rewrote the monetary history of Eurozone. Council decided to lower basic interest rates to 0.5 % starting from May 8th 2013. It is nothing else just a confirmation that nothing was solved within the Eurozone. Otherwise they would raise rates. Mario Draghi press conference looked like…
Mario Draghi verbally intervened once again and does not hesitate to tell anything. He said that the ECB is considering further non-standard monetary policy tools and will deploy them if circumstances warrant. He is also aware of the fact that the measures could have unintended consequences but the ECB will be allegedly able to manage…
The last week meeting of EU finance ministers brought about new rules on bank collapses. The new rules are definitely inspired by Cyprus event. Under the new regime, banks‘ creditors and shareholders would be the first to take losses. But if this proves insufficient to rescue the bank in question, savers holding uninsured deposits worth…
We already know that ECB is prepared to use so called OMT mechanism to buy on secondary markets government bonds in trouble. The only thing we know is that ECB is prepared but close details were never revealed to public. But the rhetoric was so strong that markets calmed down for now. Lower interests’ rates…
The European Central Bank warned about the risk of a renewed banking crisis. The main reasons behind are the euro zone’s slumping economy and a surge in problem loans. The logic is simple. Prolonged recession will cause that many borrowers were not able to repay their debts which creates more stress for European banks balance…