Markets News Regulators 

ECB weighs investigating Deutsche Bank over alleged unauthorized bond purchases: sources

“The ECB is now in a fact-finding phase to determine whether it should open a formal investigation, the people said” writes Midwest Communications Inc for 95kqds.com. The ECB eventually authorized Deutsche Bank to buy the bonds in 2017, but the ruling wasn’t retroactive.Deutsche Bank sought authorization in 2014 for the purchase of the bonds, but it was denied, the people said.But it may defeat the purpose if the bank holds the bonds, which is why the ECB requires a bank to seek its authorization to do so. Source: 95kqds.com

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Markets fear ECB tiering is an effective rate hike

“The bank has said that it will set the multiplier in a way that euro short-term money market rates are not “unduly influenced”” writes Midwest Communications Inc for 95kqds.com. The ECB last week cut interest rates by 0.10%, resumed a bond-buying program and introduced tiered rates for banks.This in turn has steepened the money market curve as investors bet the ECB will be reluctant to cut rates again soon. Source: 95kqds.com

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ECB needed to give strong signal to combat low inflation: ECB’s Wunsch

“A majority in the Governing Council chose to give a strong signal instead of the risk of running behind events” writes Midwest Communications Inc for 95kqds.com. BRUSSELS (Reuters) – The European Central Bank’s interest rate cut and fresh bond purchases were needed to combat low inflation, Governing Council member Pierre Wunsch was quoted as saying on Monday in a newspaper interview.Then, the period of low interest rates could simply have lasted longer,” Wunsch, who heads the Belgian central bank, told De Standaard.With growth and inflation both slowing, the ECB cut…

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ECB’s commitment to lifting inflation unwavering: Lane

“Both the net asset purchase horizon and the reinvestment horizon are linked to our interest rates” writes Midwest Communications Inc for 95kqds.com. “The ECB’s mandate for price stability is unconditional, and the Governing Council is unwavering in its commitment to achieve its inflation aim,” ECB Chief Economist Philip Lane, who formally proposed the easing package, said in London. They will therefore adjust dynamically to changes in the inflation outlook,” Lane said.With growth and inflation both slowing, the ECB cut rates deeper into negative territory last week and said it would…

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Divergent ECB views on stimulus moves a natural thing: Lane

“LONDON (Reuters) – The divergence of views at the top of the European Central Bank about restarting its bond buying program is a normal aspect of decision making and shouldn’t be hidden, the ECB’s chief economist Philip Lane said on Monday” writes Midwest Communications Inc for 95kqds.com. “It is natural, every central banker bank I know has a range of views at the moment,” Lane, who acts as the ECB’s chief economist, said at an event at Bloomberg in London. Source: 95kqds.com

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Central Banks to Meet With Libra Founders in Switzerland on Monday

“Officials from the European Central Bank (ECB) and 25 global central banks will meet with Libra to assess the financial stability risks of the project” writes Helen Partz for cointelegraph.com. According to Coeure, the ECB started to work on its little-known digital currency project plan before the launch of Libra.At the same gathering in Helsinki, French Finance Minister Bruno Le Maire stated that Europe should consider its own public digital currency to challenge Libra. Source: cointelegraph.com

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ECB hawks rally against Draghi’s farewell stimulus

“Providing a counterpoint to the hawks, Slovenian central bank chief Bostjan Vasle said the ECB remained ready to do even more if needed, as growth and inflation were both weak” writes Midwest Communications Inc for 95kqds.com. Germans have been especially irked by negative ECB rates and mass-selling newspaper Bild portrayed Draghi as “Count Draghila,” a blood sucking vampire, who is sucking dry the bank accounts of German savers.AMSTERDAM (Reuters) – Conservative policymakers slammed the European Central Bank’s lavish stimulus measures on Friday, voicing doubts about the need and effectiveness of…

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German tabloid likens ECB’s Draghi to Dracula as Bundesbank president adds criticism

“Paradoxically, Germans have saved more as the interest rate has declined, with the savings rate reaching 11% last year, up from the low 9% level in 2013” writes European Markets Editor for marketwatch.com. The German tabloid Bild put a photo of ECB President Mario Draghi with fangs — calling him, “Draghilas” The newspaper chastised Draghi for costing German savers billions of euros with low interest rates, calling it “devastating.” The ECB on Thursday cut its deposit rate further into negative territory, pledged to keep cap interest rates until inflation starts…

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This was arguably ECB president Draghi’s most important message yesterday

“That will be the key question that markets have to answer in the coming months after the central bank’s stimulus package announcement yesterday” reports forexlive.com. It now boils down to how effective these measures by the ECB will be in stalling the economic slowdown and bolstering inflation expectations.There is a need also for a fiscal boost by governments in order to try and combat the economic slowdown/downturn. But of course, rapid deterioration of economic data will only speed up this timeline. Source: forexlive.com

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