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…
Let’s begin with currency wars once again. Why? It is a real current issue. Look. Francois Hollande urged partners within euro zone at the beginning of the week that strong Euro is nothing for France and for others as well. He said that „The euro should not fluctuate according to the mood of the markets,”…
It was the week of central banks announcements. But frankly speaking nothing new has happened. ECB let rates unchanged and so to say the Bank of England. Mario Draghi admitted that euro area growth is still under question and that we may expect prolonged period of low inflation. This brings us back to the question…
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…
ECB decided not to make any changes to the policy and all rates remained unchanged. Mario Draghi said that ECB sees 0.6 % decline in GDP within Eurozone in 2013 and some downsides risks persist in the economic outlook. On the other hand he reconfirmed that ECB policy will remain accommodative as long as needed.…
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…
The situation in the EU is fixed thus at least according to some European leaders. But last figures show us that the most powerful motor of the EU economy – Germany is slowing down and could face recession. It has still 0.7% growth of GDP but public sector was one of the biggest contributors to…
There were two most important news of the last week. First one was the FED´s meeting we mention above. The FED will continue with purchasing of mortgage-backed securities and long term treasuries in $85 billion amount per month. According to James Rickards the basic aim is to support the domestic consumption by small threat of…