The longer the ECB allows the sovereign debt crisis to fester, the more expensive will be the eventual curative action
The financial system still faces a host of stability risks, the European Central Bank says.
Profits weak at some large financial institutions receiving government support
Credit measures to be scaled back in 2010
But the BoE signalled it is still concerned that the economy does not yet have enough stimulus in the pipeline
On the same day that the Bank of Canada warned that risks to the financial system haven’t abated, the European Central Bank echoed that position, as it also worries that a weak economy could undermine progress to repair the financial system.The ECB said Monday that many of the downside risks to euro area financial stability […]
The Bank of England and the European Central Bank both cut their rates to rock bottom levels Thursday, and took the first steps towards quantitative easing with little room left to further lower rates.The Bank of England’s Monetary Policy Committee voted to reduce the official Bank Rate by 50 basis points to 0.5% today, and […]
Outlook for financial stability remains uncertain: ECB
The European Central Bank hosted a meeting on Monday with European stakeholders concerning the establishment of central counterparties for credit default swaps (CDS).Participants in the meeting included the potential providers of such CCPs, their regulators and the main users (dealers and buy-side).It said that it shares the views of the Financial Stability Forum and of […]
But economists predict rates to drop by 75 basis points by the end of Q3 2009