Europe - ECB & BOE 01 (May 08 - Nov 11)

[HengHeng]

frankly speaking 60 billion sgd is peanuts lah ..

there is two interpretations ..

1. UK is running seriously out of options and money

2. There is already alot of money in circulation and "printing" more might bring serious inflation effects to the economy thus prelonging the depression.

[kennynah]

so ... what are you saying ???


simple english lah heng heng....

[LenaHuat]

The BOE is going to print more barrels of notes and the Royal Mint has also fired up its furnances to push more gold into the market. Oh boy, inflation is going to be bad next year

[kennynah]

agree that inflation will be a problem in the next years to come...

[millionairemind]

Published August 18, 2009

Too early to say crisis over: ECB's Weber
(BERLIN) European Central Bank Governing Council member Axel Weber on Sunday said the German economy had bottomed out, but warned that the financial crisis may not be over yet.

Mr Weber's comments chimed with remarks by fellow ECB Governing Council member Erkki Liikanen, who had said last week that financial markets are in a better situation now than they were before the collapse of US investment bank Lehman Brothers last September.

'I warn against prematurely declaring the financial crisis to be over,' Mr Weber told the Sueddeutsche Zeitung newspaper in an interview for yesterday's publication, adding however that the economy had passed its low point.

The German economy grew unexpectedly in the second quarter, posting a surprise 0.3 per cent expansion that has boosted hopes of recovery in the wider euro zone.

Mr Weber said that the economy could do better than expected in the following quarter as financial rescue packages and economic stimulus plans take effect, possibly leading him to revise upward forecasts for a 6 per cent contraction this year.

Worries over the availability of credit to the private sector, which industry and small and medium-sized firms have cited as a hindrance to recovery, are misplaced, Mr Weber said. He that he was confident commercial banks would heed the ECB's call for continued active lending. -- Reuters

[kennynah]

ECB holds rate at 1%

[winston]

ECB Lends Less Than Forecast in 12-Month Auction

The European Central Bank will lend banks less money than economists forecast in its second 12-month auction of unlimited funds, indicating banks’ need for cash has eased for now. Banks bid for 75.2 billion euros ($110 billion) at the current benchmark interest rate of 1 percent, the Frankfurt- based ECB said today.

It loaned a record 442 billion euros at the first auction in June and economists had forecast demand for 137.5 billion euros this month, according to the median of 16 estimates in a Bloomberg News survey.

The ECB, which will offer banks 12-month loans for a third time on Dec. 15, is flooding the
system with money in the hope it will be lent on to companies and households. Money-market rates have dropped as the economy shows signs of emerging from recession and banks become less wary of lending to each other.

Source: DMG

[millionairemind]

October 8, 2009, 9.26 pm (Singapore time)

Update: ECB holds rates, sees slow recovery on the way

VENICE (Italy) - The European Central Bank head Jean-Claude Trichet cautioned against hopes of a speedy economic recovery after the central bank kept its benchmark interest rate at a record-low 1.0 per cent on Thursday.

ECB President Jean-Claude Trichet said in the post-decision news conference that economic recovery in the euro zone was continuing and the freefall was over, but added the ride could be bumpy.

The euro zone economy shrank by a revised 0.2 per cent in the second quarter of the year, and analysts expect it to have grown 0.3 percent in the July-September quarter.

'Available survey indications are that ongoing economic recovery continues. The euro zone should benefit from exports and stimulus should benefit the financial system,' Mr Trichet said, but added uncertainties remain high.

'Overall the recovery is expected to remain rather uneven,' he said.

Rates appropriate
The rate decision met analyst expectations - all 82 economists in a Reuters poll had expected interest rates to stay on hold in October for the fifth month running, with most expecting them to stay unchanged until late next year.

Mr Trichet said current interest rates were suitable for the economic situation.

'The current rates remain appropriate,' Mr Trichet said. 'The incoming information and analysis since our last meeting in early September have confirmed our previous assessment.' He said inflationary pressures in the euro zone were low.

'The outcome of the monetary analysis confirms the assessment of low inflationary pressure for the medium term as money and credit expansion continues to moderate,' Mr Trichet told the news conference.

But the currently negative inflation is expected to turn positive in the coming months, he added.

Euro zone inflation fell 0.3 per cent in September, more than expected, according to the flash estimate, after dipping 0.2 per cent in August.

Banks should strengthen their capital bases, and take advantage of governments measures, particularly in recapitalisation, Mr Trichet told the news conference.

The Bank of England also kept its rates on hold on Thursday, as was widely expected, but the Reserve Bank of Australia on Tuesday became the first Group of 20 central bank to raise rates after the recession hit.

While most analysts expect the next ECB rate move to be a hike, they forecast that it will not happen before the third quarter of next year. But tighter liquidity conditions may push up market rates before that, futures pricing shows. -- REUTERS

[kennynah]

i seriously do not think the europeans will be leading the world out of a recession nor that they can tank the world into one....
i will only be interested in how the US and China performs for the next 1 year....

they f**k it up...we are in for a long long depression....otherwise... i see sunny days ahead....

[AirFlownAussiePork]

I kinda missed the promise on the pound notes....
"I promise to pay the bearer on demand the sum of …...in gold.....

Should we get back to the gold backed era?