European Central Bank President Mario Draghi said it was far too soon to talk about an exit from its massive emergency loans to banks, saying that any such move would be premature while the 17-country eurozone was struggling with slack economic conditions and record high levels of unemployment.
The press conferences following the European Central Bank's monthly monetary policy decisions have been pretty uneventful as of late. On every first or second Thursday of the month, ECB President Mario Draghi is happy to remind reporters at the ECB press conference just how in control of European sovereign debt markets the central bank is.
In a striking admission that Mario Draghi's "strategy" about the ECB's Private QE future, aka ABS monetization plan, is nothing short of converting Europe's central bank into a "bad bank" repository for trillions in bad and non-performing debt, the FT yesterday reported that "Mario Draghi is to push the European Central Bank to buy bundles of Greek and Cypriot bank loans with “junk” ratings, in a move that is set to exacerbate tensions between Germany and the bank." It is expected that the former Goldmanite will unveil details of a plan to buy hundreds of billions of
The bank also lowered its benchmark interest rate to 0.50% from 0.75%, the first cut in 10 months.
Worries about eurozone persist, with data showing manufacturing activity across the 17-nation bloc shrank in April.
The ECB also extended its cheap loans to banks until at least July 2014, reports The BBC.
Official data released on Tuesday showed record high unemployment in the eurozone, and inflation at a three-year low.
On September 4, ECB President pulled out a financial bazooka including a pledge to build up the ECB's balance sheet by another €1 trillion.Draghi confirmed the asset purchases would "include the real estate, the RMBS, real estate ABS. It would also include a fairly wide range of ABS containing loans to the real economy," but only "the senior tranches, and the mezzanine tranches only if there is a guarantee."Now, just three weeks later, he wants to buy outright junk, presumably without guarantees.
JACKSON HOLE, Wyo. — European Central Bank chief Mario Draghi is confident that stimulus steps announced in June, helped by a weaker euro, will boost demand in the ailing eurozone economy, but stressed on Friday that the central bank stands ready to do more.
Speaking at the annual Jackson Hole conference of central banks, Draghi said recent growth data confirmed the currency bloc’s recovery remained “uniformly weak” and promised to keep the policy stance accommodative for an extended period of time.
Wow! This confirms how the ECB under Draghi has changed. They’ve become pretty pro-active
FRANKFURT — The European Central Bank cut interest rates to a new record low on Thursday, responding to a slump in inflation way below its target that has sparked fears the eurozone’s economic recovery could stall.
The press conferences following the European Central Bank’s monthly monetary policy decisions have been pretty uneventful as of late.
On every first or second Thursday of the month, ECB President Mario Draghi is happy to remind reporters at the ECB press conference just how in control of European sovereign debt markets the central bank is.