A pledge by the US central bank, the Federal Reserve, for a massive spending spree of all types of US debt failed to put the brake on the global stock market sell-off, suggesting that investors are looking for huge government spending programmes and not just market-calming initiatives by central banks.
Ireland, as part of a coordinated approach with the eurozone, will likely be offered some sort of bank guarantee to respond to the Covid-19 fallout, such is the exceptional nature of the crisis , leading economists have said.
When I started working in the world of economics many moons ago, there was a cliched-term often used in popular discourse called ‘Eurosclerosis’. It was a term coined to describe and capture the anaemic growth that had characterised Europe for years.
The head of the ECB Mario Draghi came close to confirming that some interest rates are heading lower in September -- and a senior analyst says this will provide Finance Minister Paschal Donohoe with a ‘Draghi bounty’ and more ‘fiscal room’ in his autumn budget.
The ECB is in the spotlight ahead of a meeting today as it ponders making significant moves, including a rate cut that would be earlier than expected, following a survey on the dire health of manufacturing across the eurozone.
The size of the national debt may no longer be a constraint for Government spending as the world enters a “new era” of permanently low borrowing costs, leading economist Austin Hughes has said.
EU finance ministers must sort out the sources of financing for a future eurozone budget as a matter of priority, EU leaders told their finance ministers yesterday, but remained vague on the idea of a European deposit insurance scheme (Edis).
The US Federal Reserve has held interest rates steady but signalled possible rate cuts of as much as half a percentage point over the remainder of this year, as it responded to increased economic uncertainty and a drop in expected inflation.
Medha Singh and Susan Mathew European Central Bank chief Mario Draghi’s dovish remarks — signalling that the ECB will ease policy again if inflation fails to accelerate — sent European stocks to six-week highs while news that the US and China would resume trade talks at the G20 summit also boosted sentiment.
The ECB could return to its major programme of buying bonds next year, possibly meaning interest rates would stay low for much longer, but only if Bundesbank chief Jens Weidmann doesn’t get his hands on the top job at the central bank.
Upcoming national elections across Europe could ratchet up the external pressure on the Irish economy - already under threat from Brexit, potential global trade wars, and US corporate tax policy changes - an economist has warned.
Consumer and financial experts have called on regulators to probe the grip held by AIB and Bank of Ireland on the banking market. The calls come after ECB head Mario Draghi told the Oireachtas Finance Committee on Thursday that a “quasi-monopoly” was driving up the costs of credit for homes and business borrowers.