ECB

According to an account in the Financial Times last week, the latest rate cut by the ECB created a worrying north-south split, with the German-centered group opposing rate cuts and the southern faction wanting them. Today Austrian and…

The German-language media have been voicing concerns over the ECB’s low interest-rate policy and its effect on savings and investment in the euro zone. This makes sense given the state of the economy in Germany and Austria is significantly…

Consumer price inflation in the Eurozone has been below the target of 2% and falling for quite some time. But until now, the ECB has been sitting on its hands. Inflation some distance below target didn't appear to bother it - most likely…

Yesterday the European Central Bank cut the interest rate on its main refinancing operations by 25 basis points to a record low 0.25%. It also cut the rate on the marginal lending facility by 25 basis points to 0.75%. The news was…

I want to pick up where I left off yesterday and highlight the growth dichotomy between Euroland on the one hand and the U.S. and the U.K. on the other. Yesterday I wrote that the risk is to the upside in the U.S. (and the U.K.) if…

This morning I made the argument that the global economy is growing across the breadth of developed and developing economies. I still have a problem with Europe though as I believe the risk is to the downside. Basically, the policy response…

With Spain posting its first gains in GDP in over two years, every media outlet I have seen is trumpeting this as the end of the eurozone recession. I called it early, yes. However, one quarter’s GDP growth does not make recovery. Let’s…

I spoke at a Euromoney conference on inflation-linked products last year. My thesis at the time that deflation is the real problem and that inflation isn't going to be a concern - which has largely proved right - was out of step with most…

By Marc Chandler Today, ECB President Draghi essentially repeated his comments from last month. The key is that rates will remain at current levels or lower for an extended period and, although the economy is gradually recovering, growth…

The ECB has moved toward forward guidance but they have been careful not to press too far ahead, I suspect because they wanted to get Weidmann on board. Here are two recent comments on ECB policy and some of my own.