Arab Today, arab today ecb will seek to reassure markets on rates
Last Updated : GMT 04:05:16
Arab Today, arab today
Arab Today, arab today

ECB will seek to reassure markets on rates

Arab Today, arab today

Arab Today, arab today ECB will seek to reassure markets on rates

Frankfurt - AFP

The European Central Bank will seek to reassure markets that it has no plans to start raising interest rates when its policy-setting governing council meets later Thursday, analysts said. \"The latest signs of economic stabilisation should comfort the ECB in its wait-and-see stance. We don\'t expect any new policy action at this week\'s meeting,\" said ING DiBa economist Carsten Brzeski. At its June meeting, the ECB held its key rate unchanged at a current record low of 0.5 percent and its president Mario Draghi insisted at the time that the bank stood \"ready to act to given the eurozone economy a much-needed shot in the arm. Marie Diron at Ernst & Young Eurozone Forecast also predicted no policy moves this time round. \"We do not expect any change in interest rates. However, we hope that the ECB will take into account the recent volatility in financial markets developments and in particular the rise in government bond yields in eurozone peripheral countries,\" she said.Financial markets have been spooked by the announcement last month that the US Federal Reserve is preparing to phase out its bond-buying or so-called \"quantitative easing\" programme, bringing the prolonged period of loose monetary policy to an end. In response, sovereigns yields have risen across the euro area and financial conditions have generally tightened, albeit not dramatically. It was enough, however, to draw top ECB officials such as president Draghi and executive board member Benoit Coeure into publicly proclaiming that the period of low interest rates is not going to come to an end on this side of the Atlantic. Central banks in the industrialised world have been keeping interest rates at all-time lows, thereby lending money cheaply, in a bid to stimulate the ailing economy. \"To soothe market fears, the ECB has embarked on a coordinated communications offensive. ECB board members and even hawkish national central bankers have used speeches to warn against a premature policy exit,\" said Berenberg Bank economist Christian Schulz. But analysts are divided whether eurozone interest rates will continue to go lower in the coming months. Natixis economist Cedric Thellier said he was pencilling in no change in rates, at least for this month. \"Draghi should emphasise the quite well oriented leading indicators, suggesting a broad stabilisation of the economy over the next quarters,\" the analyst said. \"But no doubt he will keep a clear-cut communication, repeating the monetary policy stance will remain accommodative for as long as necessary and the governors stand ready to act if needed.\" Brzeski at ING DiBa said Draghi \"will not use traditional policy tools but rather central bankers\' other powerful tool: words. In our view, Draghi will try to send verbal messages to market participants.\" Diron at Ernst & Young said: \"We believe the ECB could fine tune its communication and give more forward guidance about the future stance of monetary policy. \"At a time when investors are uncertain about the timing of changes in monetary policy in the US, some reassurance by the ECB that eurozone monetary policy will remain very accommodative for a long time would be helpful,\" Diron concluded.

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 will seek to reassure markets on rates Arab Today, arab today ecb will seek to reassure markets on rates

 



Arab Today, arab today
Arab Today, arab today Jordan airline suggests flyers 'talk'

GMT 11:59 2017 Friday ,24 March

Jordan airline suggests flyers 'talk'
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today Dozens dead in US-led Syria strikes

GMT 08:35 2017 Thursday ,23 March

Dozens dead in US-led Syria strikes
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemen children dream of school

GMT 07:25 2017 Friday ,24 March

Yemen children dream of school
Arab Today, arab today MP submits a petition to dismiss university head

GMT 06:21 2017 Friday ,24 March

MP submits a petition to dismiss university head
Arab Today, arab today Salvage of South Korea's Sewol ferry

GMT 04:51 2017 Friday ,24 March

Salvage of South Korea's Sewol ferry
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Renault Trezor wins design award

GMT 11:56 2017 Tuesday ,21 March

Renault Trezor wins design award
Arab Today, arab today Merna Waleed praises her work with Soad Hosni

GMT 07:03 2017 Wednesday ,22 March

Merna Waleed praises her work with Soad Hosni
Arab Today, arab today 2017 already marked

GMT 15:25 2017 Tuesday ,21 March

2017 already marked

GMT 07:12 2017 Tuesday ,21 March

Donia Abdel Aziz participates in "Game of Silence"

GMT 22:00 2017 Thursday ,23 March

Number of unwedded girls amounts to 2.5m

GMT 10:34 2017 Tuesday ,21 March

Mexico threatens to ditch US corn imports

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 07:38 2017 Friday ,24 March

Pass health bill Friday or he'll move on

GMT 07:36 2017 Wednesday ,22 March

US, Britain ban laptops on flights

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
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