History Article
Close
This article was published on December 11, 2014 at 11:42.
The last change is the December 11, 2014 at 14:01.
FRANKFURT – More than 300 eurozone banks have asked the European Central Bank new liquidity 129.8 billion euro in the second auction Tltro, created to target new funding to the real economy.
The sum is more or less in line with expectations of a survey conducted by Reuters on the eve, but still brings the total of the first two operations to 212 billion euro (the first was 82 billion), just over Half of the 400 made available by the ECB. The result will strengthen the expectations of the financial markets of new interventions of the ECB, including perhaps the purchase of public securities (so-called Quantitative Easing, or Qe, already made by other major central banks), in early 2015, possibly as early as the meeting council of 22 January, despite the clear opposition of the Bundesbank and some other councilors.
The ECB is in fact far, with current tools, declared intention to increase its budget of one trillion euro , bringing it back to the levels of early 2012, to counter inflation too low with the risk of deflation and stagnant growth. Germany confirmed yesterday the inflation figure of 0.5% in November, but the new cut in France suggests that the final figure for the eurozone overall can be lowered compared to 0.3% prior. However, these values far away from the objective of staying below but close to 2%. The further fall in oil prices after the latest forecasts of the ECB, published last week, suggests that inflation as early as next month may fall to zero, or even below zero. In the monthly bulletin, published this morning, the ECB economists argue that “in principle”, the decline of oil could prove temporary.
In addition to the two Tltro (which will be followed by six more operations quarterly from now until June 2016 but from which we expect less impact), the ECB has so far fielded purchases of covered bonds for 21 billion euro and securitized securities (Abs) to 600 million euro. These are funds which, all together, leaving the institute in Frankfurt far thousand billion euro indicated by its president Mario Draghi and approved by the board. In the coming weeks, among other banks must repay about 275 billion euro obtained funding three-year LTRO at the turn of the end of 2011 and beginning of 2012, thus reducing liquidity.
The result of the second Tltro said Benoit Coeuré , member of the Executive Board of the ECB, is in line with the estimates and expectations of the ECB and the markets. “We see clearly – said the head of market operations Eurotower – that Tltro (who have four-year ed ) help to improve access to long-term liquidity of the banks.” Some analysts, however, the demand far below the offer shows the reluctance of banks to make new loans. Unlike in the past, now tha t deposit rates are negative at the ECB, the banks do not have the option to “park” liquidity back to the central bank, since one would have to pay 0.20%.
According to many observers of the market, the purchase of government bonds, with a Qe similar to the one already implemented by the US Federal Reserve, the Bank of England and the Bank of Japan may be inevitable, given that it is the market that has the volumes needed to achieve the desired expansion of the balance sheet of the ECB, the last measure remained available for further monetary stimulus, given that official interest rates are virtually zero. Until the last few days, someone thought that the ECB could expand purchases initially apply only to corporate bonds, but this hypothesis seems now overcome by the words of Draghi and the result of the second Tltro.
© ALL RIGHTS RESERVED
Permalink
“+ last +” | “+ datalunga +” “+ time +” | Realtime
“);} else {$ (‘.finanza-right-art .GraficiAndamento’). append (” “+” “+”
“+ last +” | “+ datalunga +” “+ time +”
“);} $ (‘.finanza-right-art .TabellaDati’). append (” ” ” ” ”
+ “” + name + “
+ “” + last + “
+ “” + sign + change + “
+ “” + time + “
+ ““); }}); $ (‘.finanza-Right-art .TabellaDati’). Trigger (‘dataloaded’); }, DataType: “json”, error: function (XHR, status, error) {console.log (status + “” + error); }});
No comments:
Post a Comment