Posts Tagged ‘Mersch’
…when it comes to liquidity measures. The implication is that the ECB is virtuous in comparison to the Fed and BOJ…
Central bank virtue is in the eye of the beholder.
The Fed would counter, (if sitting at the bar with a scotch and a cigarette..) “at least I’m not propping up a bunch of zombie Landesbanks!”
Pick [...]
Region faces extreme uncertainty on government decisions; waiting for decisions
EFSF should increase flexibility
Financial stability a goal growing in importance
Does not expect medium-term inflation rise above 2%
It’s that single mandate that has EUR shorts spooked. If the ECB “get’s a hair across” about inflation, we could see a repeat of the summer of 2008, when EUR/USD soared to 1.60 as the ECB focused on inflation and not on [...]
The European financial system is fragile, Luxembourg’s Mersch says. He says it may be necessary to extend the monetary policy horizon (which means ECB will continue to fund the banks for a longer period.
UPDATE: It is unnecessary for any EZ state to restructure debt, he says.
EUR/USD has eased to 1.3075 on the comments….
Luxembourg’s Mersch says he questions whether stress testing the largest banks is sufficient.
He’s not alone.
EUR/USD has dipped toward the base of the recent ranges, now at 1.2365. US equities are easing as well, now up 0.4% after opening up more than 1%. Small stops are seen below 1.2350 but central bank buying was rumored on [...]
Luxembourg central banker Mersch says that a eurozone recovery is underway but it is likely to be slow and uneven. Inflation expectations are at levels consistent with price stability. Translation: There is no need for the ECB to move on rates…
EUR/USD is firm in its range, supported by recovering equities and a bounce in oil [...]
