ECB monetary policy

central banks' new currency war

Do the central banks determine interest rates?

I believe central banks don’t control long-term rates – which are decisive for investment – and that they can influence them in what we would call normal circumstances, namely when GDP is expanding and inflation is at its optimum level. The central bank trys to control the private market’s expectations, but it doesn’t always succeed.


monetary normalisation

Preparing For The Start Of Monetary Normalisation In Europe

J.L Campuzano (Spanish Banking Association) | What is clear from ECB President Mario Draghi’s speech last Thursday is that investors consider we are closer than farther away from the start of monetary normalisation against a backdrop of economic optimism.


ecb-luminale

No Changes in ECB

The European Central Bank kept monetary policy unchanged: interest rates on hold and made only its previous broad commitment to run bond-buying for as long…



credit-and-liquidity

Credit And Liquidity In The Eurozone

J. L. M.Campuzano (Spanish Banking Association) | During one of the conferences at last week’s Jackson Hole meeting, ECB council member Benoit Coeure analysed the extreme monetary measures taken by the ECB (in reality by all the main central banks) during the crisis. His opinion was that the neutral interest rate equilibrium is now very low (the product of a combination of low potential growth and low inflation expectations) which explains the remainder of the exceptional measures implemented.




ECB

Market eyes set on ECB comments

The Corner | May 20, 2015 | Monetary policy issues will not be adresses at the ECB’s Governing Council meeting today. However, markets will be very attentive to comments that individual members make, especially given the impact of Coeuré and Noyer’s words on Tuesday (the euro fell against other currencies and European stocks rallyied on ECB bond comments).


No Picture

ECB buying sovereign bonds: why it doesn’t make sense for Spain

MADRID | By Julia Pastor | Mario Draghi has been saying he doesn’t rule out a sovereing debt QE: he reminded it at Jackson Hole, then at the European Parliament and in a euro summit in Lithuania on Thursday.  Markets are discounting those eventual state debt’s purchases. But do they make sense? Although the eurozone does not have a liquidity problem, analysts remind that the US didn’t either, and yet half of the QE3 went into govies.


No Picture

Draghi, Open to More Long-Term Loans

The Corner Team | ECB’s President Mario Draghi opened the door to providing more money to eurozone banks in order to keep market interest rates low and ensure the recovery, which finally seems to be picking up. His comments have been like fresh air to Europe’s banks, which face another stress test in the coming months.