But the BoE signalled it is still concerned that the economy does not yet have enough stimulus in the pipeline
On the same day that the Bank of Canada warned that risks to the financial system haven’t abated, the European Central Bank echoed that position, as it also worries that a weak economy could undermine progress to repair the financial system.The ECB said Monday that many of the downside risks to euro area financial stability […]
The Bank of England and the European Central Bank both cut their rates to rock bottom levels Thursday, and took the first steps towards quantitative easing with little room left to further lower rates.The Bank of England’s Monetary Policy Committee voted to reduce the official Bank Rate by 50 basis points to 0.5% today, and […]
Outlook for financial stability remains uncertain: ECB
The European Central Bank hosted a meeting on Monday with European stakeholders concerning the establishment of central counterparties for credit default swaps (CDS).Participants in the meeting included the potential providers of such CCPs, their regulators and the main users (dealers and buy-side).It said that it shares the views of the Financial Stability Forum and of […]
But economists predict rates to drop by 75 basis points by the end of Q3 2009
The European Central Bank announced today that it is extending efforts to ensure money market liquidity.The Governing Council of the ECB decided to renew the two outstanding three‑month supplementary longer-term refinancing operations (each worth €50 billion) that will mature on August 14 and September 11.“The renewal of these two supplementary three-month LTROs is aimed at […]
The European Central Bank delivered on rate hike expectations today, but economists say that it now appears to be backing off its hawkish stance a bit. Indeed, economists anticipate that most central bankers will be on hold for the balance of the year.TD Economics notes that in the press conference that followed today’s 25 basis […]
European Central Bank lending is continuing to facilitate liquidity in financial markets as intended, says Fitch Ratings in a report published today.The rating agency says that its findings run counter to some reports that European banks are increasingly using ECB lending facilities to meet core funding needs.“We believe that none of the national banking systems […]
The European Central Bank announced that it will pump yet more liquidity into the financial system.The ECB announced that its governing council decided at its meeting yesterday to conduct supplementary longer‑term refinancing operations with a maturity of six months, and further supplementary LTROs with athree month maturity. The regular monthly LTROs remain unaffected.These supplementary three-month […]