The ECB will begin to buy government bonds on March 9th. He said the ECB president, Mario Draghi
in the press conference after the meeting of the Governing Council of the central bank has decided to leave unchanged the main interest rate in the Eurozone to 0.05% after the cut made in September. The program to support the economy, already detailed in recent weeks, provides for the purchase of approximately 60 billion a month of securities.
The measures announced by the ECB are already producing results, helping the “positive developments” already visible in the situation Eurozone economic, said Draghi, speaking in Nicosia (Cyprus) where it was held today the meeting of the board.
“The latest data and in particular those relating to February indicate some improvement in the economy . Looking ahead, we expect that the economic recovery is being extended and strengthened gradually, ‘he said Draghi. “The low level of oil prices should continue to provide support to real household income and profitability – he added -. Domestic demand should be further supported by our monetary policy measures that lead to a lasting strengthening of financial conditions. “
The European Central Bank has also revised upwards its forecast on growth: in 2015 the GDP will rise by 1.5% in 2016 and 1.9% in 2017 of 2.1%. Than forecast in December, were improved estimates for 2015 and 2016 that were previously at +1 and + 1.5%. As for inflation, the ECB is expected to grow year on year zero in 2015 and then climb to 1.5% in 2016 and 1.9% in 2017.
The ECB could be called “the central bank of Greece” as loans to Athens have doubled to 100 billion euro in a month and a half, reaching 68% of GDP, up in the Eurozone, the president said in Frankfurt. “So far, the ECB has lent 100 billion euro to Greece. In the last two months we have multiplied by two our aid bringing 50000000000-100000000000 euro. The loans to Greece account for 68% of GDP greek, the highest rate in the euro zone. We can say that the ECB is the Central Bank of Greece but also the central bank of the other Member States of the euro area, “Draghi said.
Once again, reiterated Dragons,” the ECB should respect its own rules and its own laws “and” can not finance “directly Greece. The ECB “is the first to hope to resume
financing the Greek economy provided that all the conditions are met. “
The ECB has raised the Ela today, 500 million, then pointed the ECB president, referring to the emergency liquidity to banks Greek rising so 68.8 billion.
The ECB under the Treaties has a ‘prohibition of monetary financing “, both direct and indirect, that is, when” banks lead the ECB to buy government guarantees State, “added Draghi, asciando understand that will not lift more than 15 billion in the roof to emissions short of Athens.
” If there is a communication that creates volatility, increased spreads and dissolves the side, “he then said Draghi, with words critical of some outputs of representatives of the Greek Government.
The ECB will buy government bonds with a negative return, but not below the deposit rate, equal to 0.2%, said Draghi, in fact putting a cap on purchases of securities with negative performance as German ones.
Milan stock swings, slows and then resumes share on the words of the president of the ECB. The main index of the list Milan FTSE MIB earns about 1%. Oscillates also the spread between BTP and German Bund: the spread between the ten-year benchmark Italian and the same maturity German, who had taken a sharp fall immediately after the first communications rate, then began to rise again. The spread is then returned to slip coming to its lowest since 2008, to a height of 92. The current level is equivalent to a shrinkage of more than 10 points from yesterday. The yield of the BTP is 1.34 percent. Until 2008 the spread had been under heavy guard limits. In the second half of the year began the long crisis, which led to breaking the psychological threshold of one hundred points in the 28th of October, for the first time since July 1997, when he was preparing to enter into the euro .
also continuing decline of the euro. The single currency down to $ 1.1025, its lowest remaining 11 years.
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