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ECB discussing swing to tightening mode
inspector_monkfish
Posts: 9,276 Forumite
10:05 02Oct09-ECB discussing swing to tightening mode - MNSI sources
FRANKFURT, Oct 2 - European Central Bank policymakers are actively discussing the prospect of tightening the bank's ultra loose monetary policy, news agency Markets news reported on Friday, quoting a high up Eurosystem source.
"There is a lot of [ECB Council] discussion going on about moving towards a tightening bias," Market News quoted the source as saying, adding that he felt a rate hike was nowhere near imminent.
The agency said another Eurosystem source said some major central bank officials had even floated the idea of a co-ordinated rate hike, although only as a theoretical discussion.
It did not provide direct quotes to back up that line.
FRANKFURT, Oct 2 - European Central Bank policymakers are actively discussing the prospect of tightening the bank's ultra loose monetary policy, news agency Markets news reported on Friday, quoting a high up Eurosystem source.
"There is a lot of [ECB Council] discussion going on about moving towards a tightening bias," Market News quoted the source as saying, adding that he felt a rate hike was nowhere near imminent.
The agency said another Eurosystem source said some major central bank officials had even floated the idea of a co-ordinated rate hike, although only as a theoretical discussion.
It did not provide direct quotes to back up that line.
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Comments
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That's going to be a big help to:
Spain
Portugal
Eire
Italy
Greece
Slovenia
Slovakia
and maybe a few others too !!!'In nature, there are neither rewards nor punishments - there are Consequences.'0 -
That's going to be a big help to:
Spain
Portugal
Eire
Italy
Greece
Slovenia
Slovakia
and maybe a few others too !!!
Oh theres no doubt the PIIGSSS would be squealing if that happened, a rate rise now would be disastrous for them.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Can someone explain this a bit more, please?0
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I think it's more like the ECB trying to maintain some semblance of credibility (in their own eyes at least), whereas the Federal Reserve and BOE have decided solving the immediate problems far outweigh maintaining theirs !!!
What the Scottish bloke means, I have no idea !!!!'In nature, there are neither rewards nor punishments - there are Consequences.'0 -
lostinrates wrote: »Can someone explain this a bit more, please?
Eurosystem is the group of central banks for the Euro. It consists of the European Central Bank and the Central Banks of all the member countries (the latter being the equivalent of the Bank of England for each member state that's in the Euro).
The article says that 'a source' high up in Eurosystem has said that the ECB has been discussing raising interest rates.
It further goes on to say that the ECB has discussed the possibility of world Central Banks (Bank of England, Federal Reserve, ECB etc) getting together and agreeing to raise rates at the same time, presumably to stop FX rates jumping around too much (although the article doesn't say that).
Does that make more sense?0 -
Yes thank you for coming to my rescue! I understand now.
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lostinrates wrote: »Yes thank you for coming to my rescue! I understand now.
These jargonistic news pieces are very informative but only if you know the jargon!
(c) Generali's Translation Services Inc0 -
Coordinated rate hikes? Just can't see it. The ECB was way out of step coming into the credit crunch. IIRC, they hiked rates just at the start of the CC.
= more FX volatility.In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0 -
What the Scottish bloke means, I have no idea !!!!
The PIIGSSS....... Portugal, Ireland, Italy, Greece, Spain, Slovenia, Slovakia......
The basket case economies of Europe.
A rate rise to combat inflation in France or Germany would be disastrous for them, as it would strengthen the Euro, and make their exports more expensive.
A strong Euro is the last thing they need at the moment....“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
The PIIGSSS....... Portugal, Ireland, Italy, Greece, Spain, Slovenia, Slovakia......
Ah Ha !!!
I thought it might be a euphemism for someone else :rolleyes:'In nature, there are neither rewards nor punishments - there are Consequences.'0
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