Arab Today, arab today ecb set to halt rate hikes
Last Updated : GMT 06:16:28
Arab Today, arab today
Arab Today, arab today

ECB set to halt rate hikes

Arab Today, arab today

Arab Today, arab today ECB set to halt rate hikes

London - AFP

The European Central Bank will this week call a halt to its recent cycle of rising interest rates, analysts predicted, with no sign that the eurozone's economic and financial woes are ending soon. The ECB raised borrowing costs in the 17 countries that share the euro in both April and June. But analysts expect the bank to signal an end to monetary tightening and even begin paving the way for rate cuts in the coming months, after core economies France and Germany reported a sharp slowdown in growth. Only a month ago, the ECB had appeared to be "preparing us all for a quarter-point rate hike in October. However, the subsequent intensification of financial tensions and faltering growth momentum call for a significant change in rhetoric at this week's meeting," said UniCredit chief economist Erik Nielsen. Jennifer McKeown of Capital Economics also believed that "with inflation risks probably no longer deemed on the upside, the chances of further interest rate hikes have evaporated and a reversal of earlier increases now seems likely." Markets will be looking closely at revised inflation and growth forecasts also to be published by the ECB on Thursday, with both indicators expected to be pushed lower as the debt crisis rages. And that could possibly open the door to potential rate cuts. "We expect the ECB to slash its GDP forecasts, to 1.6-1.7 percent from 1.9 percent in 2011, and to 1.0-1.2 percent from 1.7 percent in 2012," said UniCredit's Nielsen. Berenberg Bank Holger Schmieding said he was expecting the ECB to "shave its growth forecasts modestly and to make a more meaningful revision to its inflation forecast." However, Commerzbank economist Michael Schubert suggested that "unless the growth and inflation outlook deteriorates markedly, there is no reason to expect" the ECB to cut rates just yet. ECB President Jean-Claude Trichet will also be bracing for tough questions about the bank's unconventional and controversial policy of buying the bonds of distressed eurozone countries such as Spain and Italy. The decision, made as investors were driving up Italian and Spanish borrowing costs to unsustainable levels, has touched off a raft of criticism from inside and outside the ECB. Some see eurobonds -- joint bonds guaranteed by the entire eurozone that would reduce borrowing rates for weaker states -- as the only way out of the current crisis. But such a solution is not viewed favourably by key members of the ECB governing council. Austrian central bank chief Ewald Nowotny already dismissed such an option last week. And in an interview in the Wednesday edition of the financial daily Boersen-Zeitung, German Bundesbank chief Jens Weidmann argued: "The leap to community-wide liability without any limitation to national sovereignty would ... undermine the incentive for solid fiscal policy." Some economists suggest Trichet could hint that the ECB is unwilling to continue buying Italian and Spanish government bonds indefinitely, piling the pressure back on Madrid and Rome to get their fiscal houses in order.

arabstoday
arabstoday

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 set to halt rate hikes Arab Today, arab today ecb set to halt rate hikes

 



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 set to halt rate hikes Arab Today, arab today ecb set to halt rate hikes

 



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 EasyJet, Lufthansa among seven to bid

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid
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 Fighters celebrate Raqa victory

GMT 06:07 2017 Wednesday ,18 October

Fighters celebrate Raqa victory
Arab Today, arab today Iran's Facebook shuts down

GMT 23:50 2017 Monday ,16 October

Iran's Facebook shuts down
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power
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 Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Anoshka happy for reactions to her talk show

GMT 12:33 2017 Friday ,13 October

Anoshka happy for reactions to her talk show
Arab Today, arab today India to close colonial-era military farms

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:55 2017 Thursday ,12 October

Safaa Sultan happy for “Love School”

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:02 2017 Saturday ,14 October

Conservation cutbacks put Brazil's

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 12:25 2017 Saturday ,14 October

Squeeze on UK health gives advanced

GMT 07:02 2017 Sunday ,15 October

German minister sparks uproar

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

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