Europe

  • 2015-07-14 13:15


    -BOE Miles Says Tightening Case Strongest At End of 6 year MPC Term

    LONDON (MNI) - Bank of England Monetary Policy Committee member David Miles said Wednesday the case to start raising Bank Rate is the strongest since he joined the MPC back in June 2009 and a hike soon was likely to be the right decision.

    In a speech at the Resolution Foundation, Miles, who has famously never voted for a change in Bank Rate in six years as a policymaker, said the current zero inflation rate is both easy to understand and its effects fairly benign. The August MPC meeting will be his final one on the committee and he believed the risks of tightening too late outweighed those of a premature move.

    The August meeting "comes at a time when I think the case for beginning a gra

  • 2015-07-14 12:34


    By Johanna Treeck

    FRANKFURT (MNI) - European Central Bank Executive Board member Yves Mersch said Tuesday that the expansion of the eligibility list of assets for the Bank's quantitative easing programme earlier this month does not represent a broader shift in policy.

    "I have said from the start that we have a purchase programme of the public sector and not of government debt," Mersch said. "It simply took us more time to study the agencies and public institutions and to confirm they are not in competition with the private sector."

    Earlier this month, the ECB broadened the list of QE-eligible agencies to include some corporate entities in which states hold majority stakes.

  • 2015-07-14 09:36


    By David Robinson and William Wilkes

    LONDON (MNI) - Bank of England Governor Mark Carney said Tuesday that regulators would still not be able to resolve the failure of one of the UK's largest banks.

    Some seven years after the financial crisis led to the near collapse of chunks of the UK banking system, Carney revealed to lawmakers that regulators have not yet got all the pieces in place to handle a major bank failure.

    "We are not yet in a position to resolve our largest institutions today," Carney told Parliament's Treasury Select Committee.

    "We have made considerable progress in terms of developing the resolution framework but the capital structure is not yet there.

  • 2015-07-14 08:44


    By Jack Duffy

    PARIS (MNI) - French President Francois Hollande said Tuesday that the Eurozone succeeded in reaching an accord on Greece largely because of cooperation between France and Germany.

    "Without the French-German partnership, it would have been impossible to reach an accord," Hollande said in his traditional Bastille Day interview with the press.

    "It was not evident that the other countries would follow, but it was a guarantee," he said.

  • 2015-07-14 08:15


    By Will Wilkes and David Robinson

    LONDON (MNI) - Bank of England Governor Mark Carney said Tuesday that the UK housing market remains a key stability concern for policymakers.

    The BOE's Financial Policy Committee is keeping a close eye on the housing market and has requested formal powers over the buy-to-let market. Speaking before UK lawmakers, Carney said government policy measures do not lead him to expect any marked rise in housing supply and house prices rises are expected to run well above inflation.

    Carney said that the Monetary Policy Committee forecasts house price growth of around 5 to 5.5% per annum over the medium term, which Carney said was a slightly lower forecast than the Office for Budget Responsibility's.

  • 2015-07-14 07:27


    - Adds Carney comment on sterling

    LONDON (MNI) - Bank of England Governor Mark Carney said Tuesday that the point at which UK interest rates will begin to rise is moving closer.

    "Given the importance of the above-trend growth, the firming of domestic costs... this initiation point is moving closer.

  • 2015-07-14 06:39


    By Will Wilkes

    LONDON (MNI) - Bank of England Governor Mark Carney said Tuesday that the point at which UK interest rates will begin to rise is moving closer.

    "Given the importance of the above-trend growth, the firming of domestic costs... this initiation point is moving closer.

  • 2015-07-14 06:31


    By Will Wilkes

    LONDON (MNI) - Bank of England Governor Mark Carney said Tuesday that the point at which UK interest rates will begin to rise is moving closer.

    "Given the importance of the above-trend growth, the firming of domestic costs... this initiation point is moving closer.

  • 2015-07-14 05:35


    FRANKFURT (MNI) - The European Central Bank on Tuesday allotted E75.537 billion in its main seven-day refinancing operation at a fixed rate of 0.05%.

    The ECB satisfied all of the 119 bids received.

    Today's operation resulted in a net add of E1.076 billion after the ECB allotted E74.463 billion in its 7-day MRO last week.

    --MNI London Bureau; tel: +44 207-862-7492; email: lcommons@mni-news.com

    [TOPICS: M$X$$$,M$$EC$,M$XDS$,MN$MM$]

  • 2015-07-14 05:01


    By Martin Baccardax

    LONDON (MNI) - Eurozone industrial production contracted sharply in May, according initial estimates published Wednesday by Eurostat, and a downward revision for the April reading, the second consecutive slippage from the original estimate, suggests significant lost momentum in the sector.

    Industrial output in May fell by -0.4% on the month, Eurostat said, well shy of the MNI median forecast of a +0.2% gain. When compared to April 2014, production rose by +1.6%, Eurostat said, weaker than the +2.0% figure anticipated by analysts polled by MNI.

    April's reading was revised to 0.0% from an original estimate of +0.1%, Eurostat said, even as the annual figure was bumped up to 0.9% from 0.8%.