Thursday, February 5, 2009

The pressure is mounting for the ECB

ECB delays on interest rates despite German industrial slump

German orders crashed 25pc in December year-on-year, roughly in line with the manufacturing melt-down underway in Japan and Korea. "This is astonishingly weak data from Europe's industrial heartland," said Julian Callow, Europe economist at Barclays Capital. Spanish orders fell 20pc. Europe's car industry has been the hardest hit sector. There is such a glut of unsold vehicles that they are being left on ships at anchor, clogging up the ports of Northern Europe. Stuck between a rock and hard place the ECB have a strong currency to support. It could be about to get dumped. Had some recent support from Japan but the confidence is going. You only need look at the data.

Posted by plato @ 07:19 PM (633 views)
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4 thoughts on “The pressure is mounting for the ECB

  • Jean-Claude Trichet, the ECB’s president, signalled a half-point cut at the next meeting in March and opened the door for further “non-standard measures” to boost the bank’s balance sheet. This does not yet include the purchase of bonds – a political can of worms in the eurozone, where the ECB is prohibited from “monetising” the debts of member states.

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  • I thought that the EMU meant that the UK was also forbidden from monetising its debt.

    Doesn’t seem to be a hindrance to the BoE’s current Zimbabwean economics thinking.

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  • I thought of this too paul. This must be something to do with legally bending the rules or the independence of our currency.

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  • plato ~~~ “This must be something to do with legally bending the rules or the independence of our currency”

    sorry but it is much more mundane, it’s Roy Hudd.

    I once listened to a conversation between Emu and a duck on stage at a pantomime. The audience were captivated, including me, for the duration the two were real and demanded attention. Just like gordy and mandy.

    no debt based money supply, no tax. takes years to get your head around but that because ~~~ perhaps later ~~~

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