ECB Guidance Is Not Tilted Toward Rate Hike

08 Juin, 2019, 16:54 | Auteur: Auguste Feret
  • They were painted on occasion of the upcoming

(EurActiv) - The European Central Bank decided on Thursday (6 June) to keep the low interest rates unchanged at least until mid-2020, and confirmed that it is considering further monetary stimulus, including further rate cuts and restarting the asset purchasing programme, to counter the trade tensions and Brexit uncertainty. But that's slim comfort for banks, whose net interest margins - the difference between the rate at which they borrow and the rate at which they lend - have been squeezed.

The ECB's main refinancing rate remains at zero, while financial firms must pay a negative interest rate of 0.4 percent on deposits with the central bank.

Notably, investors took the ECB's new message that rates would "remain at their present levels at least through the first half of 2020" as ruling out any cut until then.

"Several members raised the possibility of further rate cuts". And now we have the threat of rising protectionism, the geopolitical dangers that we have seen.

Draghi himself said central banks and the markets have been navigating troubled waters for years, and may continue to do so.

"Core" inflation, which excludes volatile items like food and energy, is still weaker.

With the bloc's inflation prospects diminishing rapidly, ECB President Mario Draghi sought to reassure investors that the central bank was ready to act if needed to support an economy hurt by weaker global trade and that it could even resort to once-taboo measures.

Trump suspends tariffs on Mexico after deal on immigration reached
A migration official checks passengers on a bus, at a checkpoint on the highway in Tapachula, Chiapas state, Mexico, June 7, 2019. Last week, Mexican President Andres Manuel Lopez Obrador agreed to increase border security on his country's northern border.

Ruptured testicle puts Mariners' Mitch Haniger on IL
Pitchers Josias Manzanillo and Mike Parrott were struck by line drives, and 3B Adrian Beltre missed 5½ weeks with the same injury. At AAA Tacoma, he was 3-2 with a save and a 5.88 ERA (22 ER, 33.2 IP) with 44 strikeouts and 19 walks in 19 relief appearances.

Real deal is dream come true for Hazard
Real Madrid on Friday confirmed the signing of Chelsea's Belgian worldwide forward Eden Hazard on a five-year contract. Where will Hazard fit in at Real Madrid? . "We look forward to welcoming him back to Stamford Bridge in the future".

It has held rates at rock-bottom and completed a "quantitative easing" (QE) bond-buying scheme amounting to 2.6 trillion euros ($2.9 trillion) between 2015 and 2018.

Both were created to increase lending, economic growth and ultimately inflation.

Other risks weigh on the eurozone, including a budget confrontation between Brussels and Rome, Greek elections and a possible no-deal Brexit following the departure of British Prime Minister Theresa May. But Draghi said European Central Bank governors had been forced to reassess this judgment given US-China trade tensions, the continued uncertainty about the timing and terms of Brexit, and "more generally the uncertainty about global trade growth".

The ECB may well have to loosen monetary policy again.

"The policy space is there", Draghi said, although "we have not discussed which contingency would call for which instrument". "Draghi would have to sound very concerned about the growth and inflation outlook to cause a reaction in the euro", said Antje Praefcke, an analyst at Commerzbank, in a note to clients.

Meanwhile, London's FTSE 100 had posted a gain of 0.55 percent, and Milan-traded equities had wrapped up the day higher despite another choppy session for the Italian lenders, shedding more than 1.2 percent on Thursday's (June 6th) intra-day trading.

But price stability in the single currency area will not be his responsibility for much longer.

Conseillé:

  • Bangladesh will not be underestimated, says Morgan

    Bangladesh will not be underestimated, says Morgan

    Both have played together 20 one-day internationals - England won 16 and Bangladesh won four. Bangladesh: Skipper Mashrafe Mortaza has a fully fit squad to pick from.
    My game plan didn't work, says Anthony Joshua

    My game plan didn't work, says Anthony Joshua

    Fury's told ESPN that he thinks Ruiz can back up the NY win in that bout, which is expected to be in November or December. I looked at Joshua and he didn't have no water, no sweat on him and I thought this guys is going to get knocked out.
    Visit to Maldives, Sri Lanka will reinforce 'Neighbourhood First' policy - Modi

    Visit to Maldives, Sri Lanka will reinforce 'Neighbourhood First' policy - Modi

    The prime minister visited the island nation in November to attend President Ibrahim Solih's swearing-in ceremony. Sri Lankan President Maithripala Sirisena had visited India last week for the oath-taking ceremony of PM Modi.
  • Queen Elizabeth honours The Crown actress Olivia Colman

    Queen Elizabeth honours The Crown actress Olivia Colman

    The oldest recipient is John Haymen, 100, who receives a BEM for services to the community in Binsted and Alton, Hampshire. Sarah Waters, famed for her raunchy novels featuring lesbian protagonists, including Tipping The Velvet , was made an OBE.
    German Nurse Who Murdered 87 Patients Given Life Sentence

    German Nurse Who Murdered 87 Patients Given Life Sentence

    Christian Marbach, a spokesman for the affected families whose grandfather was among the victims, doubted Hoegel's sincerity. After admitting on the first day of testimony to killing 100 patients in his care, Hoegel later revised his statement.

    Shakira questioned by Spanish judge over alleged tax fraud

    Subsequently, the duo was cleared of all charges by the Madrid court and let go off. Shakira somehow evaded getting clicked at the courthouse and made her way inside.
  • Modi, Rahul to arrive in Kerala on Friday

    Modi, Rahul to arrive in Kerala on Friday

    This is the first time Gandhi is participating in a public rally Kerala after the party's drubbing in the general elections. In the temple town of Guruvayur, Modi said: "Those who made us win are ours, those who did not make us win are also ours.
    Découvrez qui est la gagnante de

    Découvrez qui est la gagnante de "The Voice" — The Voice

    Au pied du podium, on retrouve France 2 qui proposait un nouveau numéro d'Envoyé Spécial . La soirée, qui se tiendra sur la place du marché, à Tresques, s'ouvrira à 19 heures.
    Does Allan Border see Pakistan as favourites to win the World Cup?

    Does Allan Border see Pakistan as favourites to win the World Cup?

    With the ICC Cricket World Cup at its peak, fans everywhere are glued to their televisions rooting for their favourite team. They have lost their opening two matches to England and Bangladesh, while India are playing their first game.
  • Des steaks hachés frauduleux distribués à des associations d'aide aux démunis

    Des steaks hachés frauduleux distribués à des associations d'aide aux démunis

    Selon lui, ce sont les plus fragiles qui mangent ces steaks: "Ceux qui prennent du steak haché le font souvent pour leurs enfants. De faux steaks hachés ont été distribués à diverses associations oeuvrant pour les plus démunis, rapporte RTL .
    Kim Jong Un's Sister Reappears in Public After Lengthy Absence, Reports Say

    Kim Jong Un's Sister Reappears in Public After Lengthy Absence, Reports Say

    Kim Hyok Chol was being regarded as one of North Korea's "rising stars" before being tasked with organizing the summit. It also said Kim Jong Un's translator had likely been sent to a prison camp for an interpreting error.
    Marketa Vondrousova to face Ashleigh Barty in French Open final

    Marketa Vondrousova to face Ashleigh Barty in French Open final

    Then I have a job to do. "Then I didn't get them, and I was like, Wow, 'that was a bad idea". "I'm putting myself into positions". Her confidence must be sky high, hitting the ball that well and feeling it so well.


Populaire

Uber chief tightens grip with top execs' departures
Jill Hazelbaker, previously senior vice president of communication and public policy, will reportedly lead the newly merged team. The decision comes almost a month after a shaky start to Uber's listing on the New York Stock Exchange. "It's been an honor".

Turkey's Erdogan is best man at footballer Mesut Ozil's wedding
The footballer, a third-generation German, whipped up a political storm when he was pictured alongside Erdogan last May. Erdogan often attends marriages in Turkey of celebrities, whom he particularly seeks out during election campaigns.

Virgil Van Dijk stays cool as those around him feel the heat
His performance against Spurs has now earned him an award from the UEFA governing body who took to social media to announce the name of Virgil Van Dijk .

Ce qui vous attend ce vendredi — Tempête Miguel
Partagés entre crainte et émerveillement, les habitants de Royan, en Charente-Maritime, ont quand même fait preuve de prudence. Dans les prochains jours, une attention particulière doit être portée à l'évolution des conditions météorologiques.

Palestinian Authority’s Secret Pay Hikes Enrage Public
Denying PA prime minister's claim of imminent collapse, Greenblatt says it is simply a matter of will on leadership's part . Palestinians want the West Bank as part of a future independent Palestinian state with East Jerusalem as its capital.

Sri Lanka president vows to block Easter attacks probe
Sirisena suspended police chief Pujith Jayasundara and dismissed his top defence official Hemasiri Fernando after the bombings. The Indian premier is to make a brief stopover in Colombo on his return from an official visit to the Maldives on Saturday.

Russia and US warships face near collision in East China Sea
According to the statement, Admiral Vinogradov was forced to perform urgent manoeuvres in order to avoid a possible collision. Navy is set to kick off a series of war games in the Baltic Sea with other North Atlantic Treaty Organisation nations.

La bande-annonce avec Brad Pitt dans l'espace — Ad Astra
Mais dans le cas de " Ad Astra ", tourné en 2017 et maintes fois reporté, l'attente est encore plus grande. L'originalité ici, c'est que ça se passe à l'autre bout du système solaire.

Michael Gove cocaine shame - Boris Johnson rival admits taking drugs
He told the Daily Mail that he had taken the drug at several "social events" while working as a journalist. Mr Gove made the confession ahead of a publication of a book about him by journalist Owen Bennett.

'Non-trivial dose': Study tries to estimate human consumption of microplastics
According to the American Chemical Society , the average American consumes more than 70,000 plastic particles a year. There's no clear handle yet on how these plastic particles could affect human health, Cox and Spaeth said.