Trichet speaks at last ECB press conference
After the European Central Bank’s Governing Council voted to leave key rates unchanged at 1.5%, the Bank’s chairman, Jean-Claude Trichet said in a press conference in Berlin that the current economic conditions remain highly uncertain, while inflation is expected to remain elevated above the Bank’s target of 2.0% over the coming period, while risks to economic growth remain on the "downside".
Trichet also said European Central Bank launched a 40 billion euros covered bonds purchases starting from November. The Bank will also offer 12 and 13-month loans for banks with full allotment and finally will extend money operations at least till July 2012.
Regarding the current situation in Europe, Trichet demanded all governments to show determination, to take decisive actions and to implement measures to reduce deficits, while nations under bailouts should implement reforms in order to stimulus growth and recovery.
ECB key rate decision steady
The European Central Bank Governing Council voted to keep the benchmark interest rate unchanged at 1.5% on October 6, where the bank did not respond to rising pressure to cut rates to stimulate growth amid the worsening growth outlook and credit crisis. The Bank also maintained the marginal lending facility at 2.25% and the deposit facility at 0.75% as widely expected. The ECB moved twice on rates this year raising rates by 25 bp in April and in July.
The Bank of England unexpectedly expands the APF
The Bank of England’s Monetary Policy Committee voted to leave the official Bank Rate paid on commercial bank reserves unchanged at 0.5%. The Committee also voted to expand the quantity of asset purchase program, financed by the issuance of central bank reserves, by £75 billion to a total of £275 billion, where this is the first increase since November 2009.
This unexpected movement from the Bank of England’s MPC came as the Committee judged that it was necessary to inject further stimulus to support the sluggish pace of growth and to revive recovery, especially when the Bank expects inflation to undershoot the 2.0% target over medium term.
The minutes of the meeting will be published at 8:30 GMT on Wednesday October 19, 2011.
Germany factory orders drop in August
Germany released the factory orders index for August, where the seasonally adjusted index dropped by 1.4% from the revised previous drop of 2.6% from 1.4%, worse than the expected flat reading.
On the other hand, the annual non-seasonally adjusted index expanded by 3.9% from the revised previous expansion of 8.9% from 8.7% below the expectations of 4.7% expansion.
U.K index of Service for July
The United Kingdom released the index of service for July, where the index expanded by 0.2% from the revised prior drop of 0.3% from 0.1%, better than the expected drop of 0.1%. in addition, the index of services for the three months ending in July expanded by 0.9% in line with expectations more than the adjusted previous expansion of 0.2% form 0.5%.
Swiss CPI rises above expectations in September
Switzerland reported a higher than expected increase in price pressures to ease deflation woes slightly, yet generally inflation remains low and still risking more SNB interventions.
The Consumer Price Index in September rose 0.3% reversing the same drop a month earlier and above the expected 0.1% increase. On the year the CPI rose 0.5% after 0.2% and above 0.3% expected.
In EU Harmonized terms the CPI added 0.3% on the month following 0.6% drop and on the year rose 0.2% reversing from 0.3% decline the previous month.
The data ease some of the pressures on the SNB yet still the franc weakened strongly his morning amid ongoing talks of more SNB intervention which the bank refused to confirm.
Swissy weakened against its rivals after the Foreign Currency Reserves in September were reported this morning with a strong rise to 282.4 billion swiss francs from 253.4 billion confirming the bank’s commitment to defend the franc and weaken it against its rivals to stave off deflation and recession risks.
After the European Central Bank’s Governing Council voted to leave key rates unchanged at 1.5%, the Bank’s chairman, Jean-Claude Trichet said in a press conference in Berlin that the current economic conditions remain highly uncertain, while inflation is expected to remain elevated above the Bank’s target of 2.0% over the coming period, while risks to economic growth remain on the "downside".
Trichet also said European Central Bank launched a 40 billion euros covered bonds purchases starting from November. The Bank will also offer 12 and 13-month loans for banks with full allotment and finally will extend money operations at least till July 2012.
Regarding the current situation in Europe, Trichet demanded all governments to show determination, to take decisive actions and to implement measures to reduce deficits, while nations under bailouts should implement reforms in order to stimulus growth and recovery.
ECB key rate decision steady
The European Central Bank Governing Council voted to keep the benchmark interest rate unchanged at 1.5% on October 6, where the bank did not respond to rising pressure to cut rates to stimulate growth amid the worsening growth outlook and credit crisis. The Bank also maintained the marginal lending facility at 2.25% and the deposit facility at 0.75% as widely expected. The ECB moved twice on rates this year raising rates by 25 bp in April and in July.
The Bank of England unexpectedly expands the APF
The Bank of England’s Monetary Policy Committee voted to leave the official Bank Rate paid on commercial bank reserves unchanged at 0.5%. The Committee also voted to expand the quantity of asset purchase program, financed by the issuance of central bank reserves, by £75 billion to a total of £275 billion, where this is the first increase since November 2009.
This unexpected movement from the Bank of England’s MPC came as the Committee judged that it was necessary to inject further stimulus to support the sluggish pace of growth and to revive recovery, especially when the Bank expects inflation to undershoot the 2.0% target over medium term.
The minutes of the meeting will be published at 8:30 GMT on Wednesday October 19, 2011.
Germany factory orders drop in August
Germany released the factory orders index for August, where the seasonally adjusted index dropped by 1.4% from the revised previous drop of 2.6% from 1.4%, worse than the expected flat reading.
On the other hand, the annual non-seasonally adjusted index expanded by 3.9% from the revised previous expansion of 8.9% from 8.7% below the expectations of 4.7% expansion.
U.K index of Service for July
The United Kingdom released the index of service for July, where the index expanded by 0.2% from the revised prior drop of 0.3% from 0.1%, better than the expected drop of 0.1%. in addition, the index of services for the three months ending in July expanded by 0.9% in line with expectations more than the adjusted previous expansion of 0.2% form 0.5%.
Swiss CPI rises above expectations in September
Switzerland reported a higher than expected increase in price pressures to ease deflation woes slightly, yet generally inflation remains low and still risking more SNB interventions.
The Consumer Price Index in September rose 0.3% reversing the same drop a month earlier and above the expected 0.1% increase. On the year the CPI rose 0.5% after 0.2% and above 0.3% expected.
In EU Harmonized terms the CPI added 0.3% on the month following 0.6% drop and on the year rose 0.2% reversing from 0.3% decline the previous month.
The data ease some of the pressures on the SNB yet still the franc weakened strongly his morning amid ongoing talks of more SNB intervention which the bank refused to confirm.
Swissy weakened against its rivals after the Foreign Currency Reserves in September were reported this morning with a strong rise to 282.4 billion swiss francs from 253.4 billion confirming the bank’s commitment to defend the franc and weaken it against its rivals to stave off deflation and recession risks.
