ecb to hold fire on rates at final meeting of 2012
Last Updated : GMT 07:10:15
Arab Today, arab today
Arab Today, arab today

ECB to hold fire on rates at final meeting of 2012

Arab Today, arab today

Arab Today, arab today ECB to hold fire on rates at final meeting of 2012

Frankfurt - AFP

The European Central Bank will hold fire on interest rates at its last policy meeting of 2012 Thursday, even if its updated forecasts will suggest the eurozone\'s recession is deepening, analysts said. With ECB interest rates already at record lows and its latest anti-crisis weapon primed and ready for action, chief Mario Draghi has never ceased to argue that the ball is in the court of the governments to find a way out of the long-running crisis. And while many ECB watchers believe there is room for additional monetary easing, none of them see the bank cutting its key refi rate below its current level of 0.75 percent at Thursday\'s meeting in the Eurotower headquarters. \"The ECB is highly unlikely to cut interest rates. It has explained before that it thinks such a cut would have no impact on the economy as the transmission mechanism remains impaired,\" said Marie Diron at Ernst & Young Eurozone Forecast. There is some debate on the effectiveness of further monetary easing since the rate cuts so far have not been feeding through to the countries that would benefit from them most, notably the debt-wracked countries. Diron said she would look out for changes in the ECB\'s growth and inflation forecasts, updates to which are also to be published on Thursday. \"We have long held the view that the eurozone would broadly stagnate for a second consecutive year in 2013. The ECB is likely to revise down their projections towards a similar forecast,\" Diron said. Back in September, ECB staff already slashed their forecast for growth in the eurozone for both this year and next, pencilling in a contraction of 0.4 percent this year followed by modest growth of 0.5 percent in 2013. Berenberg Bank economist Christian Schulz said the ECB was facing a dilemma. \"The eurozone economy is in recession, inflation is falling sharply and unemployment reaching new highs. This may warrant further monetary stimulus,\" he said. \"At the same time, resistance to further stimulus in key core countries such as Germany is strong. In these circumstances, the ECB is likely to leave rates unchanged,\" Schulz predicted. UniCredit economist Marco Valli agreed, but he suggested that, unlike last month when no cut was discussed at all, the decision to leave rates unchanged \"is unlikely to be unanimous and some governing council members will probably favour a quarter-point cut in the refi rate.\" \"The ECB still seems to have doubts that another rate cut could really kick-start growth,\" said ING Belgium economist Carsten Brzeski. Indicators and data released since the last rate-setting meeting have provided clear evidence that the eurozone economy is still in recession, so the window of opportunity for a rate cut was still open, the analyst said. \"However, as long as the transmission mechanism of monetary policy is not fully functioning, the ECB will remain hesitant to use its last ammunition and would rather consider further unconventional measures,\" he argued. Nevertheless, the ECB\'s job \"is still not done,\" he insisted. \"At some point in time, the ECB will have to prove that the new bond buying programme -- the OMT -- is more than only an illusionary giant. Moreover, if the current tentative signs of stabilisation turn out to be a false start, even a rate cut is still possible,\" Brzeski said. But he concluded: \"At this week\'s meeting, the ECB will try everything to not ruin the current calm pre-Christmas atmosphere.\"

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*

ecb to hold fire on rates at final meeting of 2012 ecb to hold fire on rates at final meeting of 2012

 



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*

ecb to hold fire on rates at final meeting of 2012 ecb to hold fire on rates at final meeting of 2012

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today The Big Apple bike boom

GMT 10:47 2017 Wednesday ,22 November

The Big Apple bike boom
Arab Today, arab today Sophian Yussef reveals suitable decoration

GMT 02:56 2017 Thursday ,23 November

Sophian Yussef reveals suitable decoration
Arab Today, arab today Syria opposition meets in Riyadh

GMT 06:23 2017 Thursday ,23 November

Syria opposition meets in Riyadh
Arab Today, arab today 'Advanced' cyber attack targets Saudi Arabia

GMT 10:18 2017 Wednesday ,22 November

'Advanced' cyber attack targets Saudi Arabia
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
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 Honda recalls 800,000 minivans

GMT 11:43 2017 Wednesday ,22 November

Honda recalls 800,000 minivans
Arab Today, arab today VW says will invest over 34bn euros

GMT 07:19 2017 Tuesday ,21 November

VW says will invest over 34bn euros
Arab Today, arab today Singer Jahda Wahba has unlimited ambitions

GMT 07:56 2017 Monday ,20 November

Singer Jahda Wahba has unlimited ambitions
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 09:23 2017 Saturday ,18 November

Fedra happy for “Between Two Worlds” success

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts

GMT 13:41 2017 Tuesday ,21 November

French choke up over proposal

GMT 00:44 2017 Monday ,20 November

Japanese regulators raid Airbnb

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
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