Arab Today, arab today european central bank meets to discuss potential rate cut
Last Updated : GMT 10:28:29
Arab Today, arab today
Arab Today, arab today

Policymakers aim to turn around sovereign yields

European Central Bank meets to discuss potential rate cut

Arab Today, arab today

Arab Today, arab today European Central Bank meets to discuss potential rate cut

Refinancing hits 0.75%-low
Bratislava - Arabstoday

Refinancing hits 0.75%-low The European Central Bank convened in the Slovakian capital of Bratislava on Thursday to discuss a rate cut or other possible policy measures. Most ECB watchers appear to be betting on a further reduction in the bank's "refi" refinancing rate, held at an historic low of 0.75 percent since July 2012.
But others argue that such a move may not actually prove particularly effective.
Berenberg Bank economist Christian Schulz believed that expectations for a quarter-point cut in the refi were supported by comments made by ECB chief Mario Draghi at last month's meeting.
"Draghi had announced they would very closely monitor incoming economic data. Since then, sentiment indicators and inflation data have been weak and unemployment on the rise, suggesting that opposition to more action, including a rate cut, should be crumbling," Schulz said.
"We see a 60-percent chance of a rate cut at today's meeting or in June," the expert said.
However, many ECB policy makers -- including most recently ECB executive board member Joerg Asmussen -- do not seem to believe that a rate cut would have much effect on the economy, Schulz said.
Interbank lending rates were close to zero and even peripheral sovereign yields had not been this low since the beginning of the crisis.
"The key obstacle to a growth recovery seems to be the blocked credit channel to the small and medium-sized enterprises (SMEs)," he said.
"We expect the ECB to focus its efforts on this transmission channel," Schulz said.
Draghi could announce new initiatives to help SMEs, potentially by improving the eligibility of loans to this sector as collateral in monetary operations.
The ECB could also announce more collaboration with European and national institutions to create new support schemes for SMEs, the expert said.
Marie Diron at Ernst & Young Eurozone Forecast said it would be "very surprising" if the ECB did not cut interest rates.
"Financial markets expect a rate cut and if the ECB did not want to do it, we believe some governing council members would have flagged their opposition to the measure in recent speeches," she said.
But any monetary easing would "only have a small impact on the economy," Diron cautioned.
The ECB could, however, make it more effective by indicating whether monetary policy will be kept very accommodative for a long time, the analyst suggested.
"The ECB has so far been reluctant to pre-commit but financial markets and businesses need some visibility. Some form of forward guidance, similar to what the US Federal Reserve has communicated, would be helpful," Diron said.
She, too, would particularly watch for though is additional measures, in particular any measure aimed at easing credit conditions for SMEs and peripheral countries.
"The ECB can play a significant role in fostering domestic activity with measures designed to get credit flowing again where it is most needed," Diron said.

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 european central bank meets to discuss potential rate cut Arab Today, arab today european central bank meets to discuss potential rate cut

 



Arab Today, arab today
Arab Today, arab today Hats, scarves add beauty to women

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today To release new antiques collection

GMT 20:33 2017 Friday ,17 February

To release new antiques collection
Arab Today, arab today Optimism on the front line

GMT 07:24 2017 Monday ,20 February

Optimism on the front line
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic

GMT 10:06 2017 Friday ,17 February

South Korea's Hanjin Shipping declared bankrupt

GMT 09:26 2017 Friday ,17 February

Samsung's history tainted by run-ins with the law

GMT 09:20 2017 Friday ,17 February

Samsung heir arrested in corruption probe

GMT 10:26 2017 Thursday ,16 February

Dollar, equities stutter in Asia after Trump rally

GMT 08:45 2017 Thursday ,16 February

Hanjin saga reveals S.Korea corporate governance flaws

GMT 09:40 2017 Wednesday ,15 February

Heineken profits drained in 2016 by currency turmoil

GMT 09:10 2017 Tuesday ,14 February

Sharjah Chamber Eyes Strong Economic Ties with Belgium
View News in Arabic - Business: أخبار الأعمال
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Porsche reveals new 2018 Panamera

GMT 17:31 2017 Wednesday ,15 February

Porsche reveals new 2018 Panamera
Arab Today, arab today Egypt to hold first session of Arab film festival

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 14:04 2017 Tuesday ,14 February

"Lagom" new Swedish concept in interior design

GMT 12:07 2017 Thursday ,16 February

Bite-mimicking malaria vaccine

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 21:42 2017 Sunday ,12 February

Rania al-Ghazali designs candles of bubbles
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