Arab Today, arab today ecb in \waitandsee\ mode after unprecedented moves
Last Updated : GMT 05:35:58
Arab Today, arab today
Arab Today, arab today

ECB in \'wait-and-see\' mode after unprecedented moves

Arab Today, arab today

Arab Today, arab today ECB in \'wait-and-see\' mode after unprecedented moves

Frankfurt - AFP

The European Central Bank will hold borrowing costs steady Thursday after cutting rates twice in recent months and providing unprecedented amounts of liquidity to avert a credit crunch, analysts said. The ECB will want to see how these moves have played out, economists said, although some said they hoped to see signals of even lower rates amid signs of a credit crunch and ongoing fears over Greece. However, the economic fundamentals for the 17-nation eurozone have not changed significantly, with Germany in particular showing better-than-expected resilience to the debt crisis. So, ahead of a second huge auction of liquidity at the end of this month and next month's publication of the ECB staff projections for inflation and growth, "the central bank is unlikely to act on either interest rates or non-standard measures," said Christian Schulz, senior economist at Berenberg Bank. Since the ECB's new president Mario Draghi took office 100 days ago, the central bank has brought eurozone borrowing costs back down to their previous historical low of 1.0 percent. It has also offered banks in the region an unlimited pool of liquidity by loosening collateral rules, cutting the minimum reserve ratio and launching new three-year loans at super-cheap rates. "It is reasonable to assume that the central bank will want to assess the response of financial markets, the banking sector and the real economy to the huge stimulus already in place and in the pipeline, before deciding whether to deliver additional easing," said UniCredit economist Marco Valli. "The ECB has probably entered wait-and-see mode." Draghi insists the ECB measures are working. At the World Economic Forum in Davos, Switzerland, last month, he said the eurozone had made "outstanding" progress towards resolving the debt crisis. Central bank watchers said they would be listening out for signals regarding more possible rate cuts in the future. "If not decided this week, we guess Draghi should strongly suggest, or even announce a rate cut for March," said Cedric Thellier, eurozone economist at Natixis. "Significant downward revision of the quarterly projections that will be released next week and worrying figures from the recent bank lending survey would be sufficient from our point of view to justify such a move," Thellier said. In a sign of a possible credit crunch, the ECB found in its latest regular quarterly bank lending survey that banks have tightened credit conditions for both households and businesses even as demand for loans is falling. Capital Economics chief European economist Jonathan Loynes said attention would likely focus on the possibility of the ECB writing down parts of its holdings of Greek bonds. It would be a "positive signal" if the bank were to agree to such a move, said Thellier at Natixis. Greece's private creditors are being asked to write off about half of the 200 billion euros' worth of government debt they hold to help cut the country's total debt burden down to a sustainable level. The ECB has come under pressure to take losses on the Greek government bonds it holds as the restructuring by private creditors is unlikely to bring down Greece's debt to the target of 120 percent of GDP in 2020 from 160 percent at present.

arabstoday
arabstoday

GMT 18:53 2017 Wednesday ,20 September

Dollar exchange rate stable at major banks

GMT 21:04 2017 Monday ,18 September

Dollar exchange rate stable at major banks

GMT 19:07 2017 Monday ,18 September

Inflation slump to hit in early 2018: ECB

GMT 20:35 2017 Sunday ,17 September

Dollar exchange rate stable at major banks

GMT 05:53 2017 Saturday ,16 September

ECB fines rescued Italian bank 11.2 mln euros

GMT 11:43 2017 Tuesday ,12 September

US sues ex-Deutsche Bank exec for securities fraud
Arab Today, arab today
Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today ecb in \waitandsee\ mode after unprecedented moves Arab Today, arab today ecb in \waitandsee\ mode after unprecedented moves

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today ecb in \waitandsee\ mode after unprecedented moves Arab Today, arab today ecb in \waitandsee\ mode after unprecedented moves

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today A no-frills business success

GMT 07:00 2017 Wednesday ,20 September

A no-frills business success
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Israel sees benefits in independent Kurdistan

GMT 07:58 2017 Wednesday ,20 September

Israel sees benefits in independent Kurdistan
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today New Zealand opposition looks

GMT 10:35 2017 Thursday ,14 September

New Zealand opposition looks
Arab Today, arab today Puerto Rico, Virgin Islands brace

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Intel chips loaded in Waymo

GMT 14:43 2017 Wednesday ,20 September

Intel chips loaded in Waymo
Arab Today, arab today Five trends at the Frankfurt auto show

GMT 12:04 2017 Monday ,18 September

Five trends at the Frankfurt auto show
Arab Today, arab today Horia Farghaly happy for success of “Case G”

GMT 12:14 2017 Monday ,18 September

Horia Farghaly happy for success of “Case G”
Arab Today, arab today France hopeful of persuading Trump

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 06:31 2017 Saturday ,16 September

Eman Al Assy receives three offers

GMT 05:05 2017 Tuesday ,12 September

Pregnant woman's suicide roils China

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 04:26 2017 Wednesday ,20 September

Opioid overdose deaths take 2.5 months

GMT 11:40 2017 Monday ,18 September

Russia and Iraq restore air travel

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:56 2017 Friday ,15 September

Apple's grand plan in Ireland held up by a forest

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday