LATEST NEWS : Euro Area Limping Toward Deflation Fuels QE Calls as ECB Meets

The euro area is edging closer to the moment that deflation risks become reality. Companies cut selling prices by the most since 2010 as they attempted to boost sales in the face of a flagging economy and slowing new orders, Markit Economics said today. This in turn is squeezing profit margins and reducing resources for […]

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LATEST NEWS : Draghi Devaluing Euro Cheers ECB as Inflation Seen Fading

Mario Draghi’s strategy for reviving the euro area looks like devaluation. While the European Central Bank president says the exchange rate isn’t a policy target, officials aren’t secretive about their approval of the currency’s almost 10 percent slide. The depreciation increases the cost of imports and boosts exporters’ competitiveness, aiding the effort to revive inflation […]

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LATEST NEWS : Euro Inflation Slows as Draghi Hints at More ECB Stimulus

Euro-area inflation slowed in August and the region’s unemployment rate remained close to a record, increasing pressure on the European Central Bank to take action to kindle the bloc’s faltering recovery. continue reading at bloomberg.com

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LATEST NEWS : Euro-Area Confidence Falls as Low Inflation Alarms ECB

Euro-area economic confidence fell more than forecast, Spanish consumer prices dropped the most in five years and German unemployment unexpectedly rose in a burst of data backing Mario Draghi’s warning that more stimulus may be needed. continue reading at bloomberg.com

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LATEST NEWS : Draghi Poised to Keep Rate-Cut Option Even After June Move

Mario Draghi is likely to signal that any interest-rate cut this week won’t necessarily be the final one, according to two euro-area central bank officials. The European Central Bank president will probably reiterate his commitment to keep borrowing costs at present or lower levels, the people said, asking not to be identified because the talks aren’t […]

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LATEST NEWS : Draghi’s Euro Angst Rising as Rally to $1.40 Pummels: Currencies

The case for European Central Bank action to curb the euro’s gains is getting stronger after the 18-nation currency jumped to within a half-cent of $1.40. cash loan definition “A print of $1.40 is a psychologically important level which may set off some alarm bells to officials,” Neil Jones, the head of hedge-fund sales at Mizuho […]

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Central Banks Split on Stimulus in 2014 as Fed Tapers

The united stimulus front of central banks is starting to splinter as 2014 dawns. The Federal Reserve — soon to be led byJanet Yellen, confirmed today by the Senate as the next chairman — begins pulling back on its quantitative easing amid stronger U.S. growth, and the Bank of England is trying to cool its housing market. […]

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ECB Keeps Rate at Record Low as Officials Weigh Forecasts

he European Central Bank kept its benchmark rate unchanged at a record low after policy makers assessed new economic forecasts. The Governing Council meeting in Frankfurt today left the main refinancing rate at 0.25 percent after cutting it by a quarter point last month. The decision was predicted by all 60 economists in a Bloomberg survey. […]

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ECB Cuts Key Rate to Record Low to Fight Deflation Threat

The European Central Bank cut its benchmark interest rate to a record low after a drop in inflation to the slowest pace in four years threatened its mission to keep prices stable. Policy makers meeting in Frankfurt today reduced the main refinancing rate by a quarter point to 0.25 percent. The decision was predicted by […]

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Draghi’s Deflation Risk Complicates Recovery: Euro Credit

A price slowdown could turn into a negative spiral that derails the recovery in the euro region. While the 17-nation economy exited six quarters of recession in the three months through June, it still has record unemployment and shrinking bank lending. “The ECB has become unusually tolerant of low inflation, even by its own standards,” […]

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