European Central Bank has voted to restart its QE programme, and hit banks with deeper negative interest rates to make them lendTHIS IS WHAT THE ECB JUST ANNOUNCEDECB president Mario Draghi press conference highlights from 1.30pmLatest: Draghi says governments must boost spendingPresident Trump claims ECB is weakening the euroBREAKING: New Stimulus Package from the ECBQE restarted – at €20bn per month
4.09pm BST Mario Draghi was correct to call for more eurozone government spending, argues Ken Wattret, chief European economist at IHS Markit.But the call may not be needed until Europe’s economy is in real trouble, he fears….
The need for fiscal policy to complement monetary policy accommodation again featured more prominently [at today’s ECB press conference].Draghi called for “effective, timely” action from member states which have fiscal space. Christine Lagarde is on the same page clearly. The likelihood of fiscal stimulus is clearly increasing, including from Germany, which is already in recession (bar the confirmation from Q3 GDP). 3.30pm BST My colleague Richard Partington has filed a news story, explaining what the ECB has done today, and why:The European Central Bank has announced a fresh stimulus package in an attempt to prevent the fragile eurozone economy from grinding to a halt, with an interest rate cut and plans to pump €20bn (£19bn) a month into the financial markets.In one of the final acts of Mario Draghi’s presidency before Christine Lagardetakes charge of the ECB in November, the central bank said it would reboot its quantitative easing (QE) programme of bond-buying programme in that same month. Related: ECB announces fresh stimulus as eurozone economy falters Continue reading…
Source link : https://www.theguardian.com/business/live/2019/sep/12/trump-delays-tariffs-markets-ecb-stimulus-package-qe-mario-draghi-business-live
Author : Graeme Wearden
Publish date : 2019-09-12 15:10:03
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