Market Liquidity Fear

The ECB, market liquidity fear and an expandable shopping list. The ECB did stuff last week, namely it cut rates while downplaying further cuts, tried to protect the banks under its care from negative rates and pledged to boost its balance sheet due to its fear of market liquidity reduction. That was considered, after some confusion, impressive by markets, amongst other things because of the ECB’s shift to buying up private assets — “investment-grade euro-denominated bonds issued by non-bank corporations established in the euro area are to be inccluded in QE,” as Deutsche summarised while others wondered aloud about…

ECB new economic stimulus

ECB new economic stimulus is expected The European Central Bank is expected to announce further measures to stimulate the eurozone economy when its governing council meets on Thursday. As inflation has continued to fall, putting more pressure on ECB president Mario Draghi to take action with an ECB new economic stimulus. The European Central Bank is expected to announce further measures to stimulate the eurozone economy when its governing council meets on Thursday. The annual rate of inflation now stands at minus 0.2% – even further below the bank’s target…