Arab Today, arab today ecb set to keep gunpowder dry as economic gloom deepens
Last Updated : GMT 17:45:31
Arab Today, arab today
Arab Today, arab today

ECB set to keep gunpowder dry as economic gloom deepens

Arab Today, arab today

Arab Today, arab today ECB set to keep gunpowder dry as economic gloom deepens

European Central Bank
Frankfurt - AFP

The European Central Bank is likely to hold fire on any new policy measures Thursday even as the clouds continue to darken over the euro area economy, analysts said.
Despite growing pressure for more action to ward off the spectre of deflation in the single currency area, ECB President Mario Draghi will likely argue that a raft of previous radical measures still need time to unfold, the analysts argued.
"We do not expect the ECB to announce new measures. The ECB will likely focus on the measures taken so far," said Natixis economist Johannes Gareis.
This month's regular monetary policy meeting "will be a non-event," agreed UniCredit economist Marco Valli. "All the available signals suggest the ECB will maintain the status quo."
On Tuesday, the EU slashed its 2014 growth forecast for the 18-country eurozone to just 0.8 percent from the previous 1.2 percent, with 2015 chopped to 1.1 percent from 1.7 percent.
The ECB does not have much room to cut interest rates much further, anyway, as they are already at 0.05 percent, an all-time low.
So, the ECB has embarked upon a series of liquidity programmes to inject cash into the economy to try and kick-start stymied credit, seen as the main hurdle to a sustained recovery.
In addition to targeted long-term refinancing operations or TLTROs -- which make cheap liquidity available to banks on condition they lend it on to companies -- the ECB has launched a programme to buy covered bonds.
Furthermore, the ECB is launching purchases of asset-backed securities (ABS), or bundles of individual loans such as mortgages, car loans and credit-card debt sold on to investors, to allow banks to share the risk of default and free up funds to offer more lending.
Draghi has said the combined effect of these measures will ECB could boost the size of the bank's balance sheet by one trillion euros ($1.25 trillion).
Nevertheless, the effects of the measures have yet to fully unfold, because analysts believe some banks may have preferred to hold off until after the results of the ECB's most stringent-ever audit of lenders were published.
The results of the audit were published last week, giving a large majority of banks a clean bill of health.
Media reports of serious disagreements on the ECB's policy-setting governing council and criticism of Draghi's leadership style were exaggerated, analysts said.
"What's so new or unusual about lively debates within a central bank?" asked Berenberg Bank economist Holger Schmieding.

 

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 keep gunpowder dry as economic gloom deepens Arab Today, arab today ecb set to keep gunpowder dry as economic gloom deepens

 



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 keep gunpowder dry as economic gloom deepens Arab Today, arab today ecb set to keep gunpowder dry as economic gloom deepens

 



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 Taxi! Transport gets an overhaul

GMT 12:09 2017 Sunday ,24 September

Taxi! Transport gets an overhaul
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 Turkey warns of 'security' steps

GMT 12:17 2017 Sunday ,24 September

Turkey warns of 'security' steps
Arab Today, arab today North Korea 'more opaque'

GMT 10:50 2017 Sunday ,24 September

North Korea 'more opaque'
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 'Lady Beast' fights for girl gamers

GMT 10:27 2017 Sunday ,24 September

'Lady Beast' fights for girl gamers
Arab Today, arab today Psychologists help Mexico deal

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal
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 Third generation adds more power

GMT 13:40 2017 Sunday ,24 September

Third generation adds more power
Arab Today, arab today Carmakers face billions in European

GMT 12:37 2017 Saturday ,23 September

Carmakers face billions in European
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today Big Western brands polluting oceans

GMT 20:10 2017 Saturday ,23 September

Big Western brands polluting oceans

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 18:11 2017 Saturday ,23 September

Doctor provides advices to families

GMT 13:36 2017 Saturday ,23 September

unveils Joon - the 'millenials' airline

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

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