Saturday, March 12, 2016

Victor Gill // SPAIN: The Bundesbank opposed the new battery ECB stimulus – EntornoInteligente

Expand / The President of the German central bank refused to increase bond purchases to 80,000 million euros from the previous month to 60,000 million euros, reports Dow Jones, citing sources familiar with the situation.

The Bundesbank opposed the stimulus package of the European Central Bank (ECB) as structured on Thursday and fears a “circle of doom” of high market expectations followed by disappointment, according to Dow Jones.

The ECB announced Thursday a larger package of expected cuts in interest rates, bond purchases and ultra-cheap loans, which increased its stimulus for the second time in three months in an attempt to encourage inflation and spur the fragile eurozone economy.

markets fixed income and equities rebounded at first, but later changed sign and closed lower after the president of the institution, Mario Draghi said at the press conference traditional that interest rates will probably not be recessed more.

President of the Bundesbank, Jens Weidmann, opposed the decision to increase bond purchases to 80,000 million monthly euros from the previous 60.000 million euros, according to sources familiar with the situation. Weidmann did not vote at the meeting on Thursday because of the system of rotating voting rights of the ECB.

Traditional tools The president of the German central bank was willing, however, to discuss more traditional tools of central bank such as interest rates or long-term loans, but would have preferred not to do anything at all, according to sources.

for some time, the Bundesbank opposes purchases of government debt, since considered a risky tool of monetary policy that could inflate asset bubbles and reduce the reformist pressure on heavily indebted countries.

Some of the 25 members of the governing council of the ECB fear that after years of easy money policies, new incentives are becoming less effective, the sources said.

Nineteen members of the governing council of the ECB voted to stimuli, according to the sources, two voted against-the governor of the Dutch central bank, Klaas Knot, and Sabine Lautenschlaeger, German member of the executive committee BCE- and four had no right to vote on Thursday

SPAIN. the Bundesbank opposed the stimulus battery ECB

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See also www.mundinews.com | www.eldiscoduro.com | www.tipsfemeninos.com | www.economia-venezuela.com | www.politica-venezuela.com | www.enlasgradas.com | www.cualquiervaina.com | www.espiasdecocina.com | www.videojuegosmania.com

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OTHER INFORMATION: Francisco Velasquez (PDVSA) . Petro Piar. Pius XII ended in fourth place sucrense tournament. Club officials thanked Pius XII Pequiven manager, Edinson Parra and his counterpart from Petropiar, Francisco Velasquez , for their collaboration to attend the competition. Francisco Velasquez said it is expected that the academy participate next July 20 in another tournament, which will take place at the Club Petroamigos, located in the Gulf area of ​​the municipality Sotillo.

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