DislikedThe Bernank manages to answer every question....thoroughly...but you STILL don't really know what the answer was.Ignored
u have to be a rednick to know
- #398,341
- Mar 1, 2011 9:47am Mar 1, 2011 9:47am
- Joined Nov 2009 | Status: voodoo boodoo hit man | 17,076 Posts
- #398,343
- Mar 1, 2011 9:49am Mar 1, 2011 9:49am
- Joined Mar 2010 | Status: Technical Fundamentalist | 11,563 Posts
Pending conversations? PM for a chat...I am mainly in OTM now
- #398,344
- Mar 1, 2011 9:54am Mar 1, 2011 9:54am
- Joined Oct 2008 | Status: sideline is a position | 105,124 Posts
those who can, do. those who cant, talk about those who can
- #398,345
- Mar 1, 2011 9:55am Mar 1, 2011 9:55am
- Joined Jul 2007 | Status: Short on USD/MXN, Long on legs | 16,578 Posts
New voice message: Why are you calling me? If I need you, I'll call you!
summer is coming- #398,350
- Mar 1, 2011 10:06am Mar 1, 2011 10:06am
- Joined Oct 2008 | Status: sideline is a position | 105,124 Posts
those who can, do. those who cant, talk about those who can
- #398,353
- Mar 1, 2011 10:10am Mar 1, 2011 10:10am
- Joined Jan 2010 | Status: Amat victoria curam | 2,333 Posts
2011-03-01 16:04:00 ECB WATCH: Trichet To Talk Tough On Inflation, Addicted Banks
--Trichet to step up warnings on inflation, addicted banks
--Trichet may highlight "upside risks" to inflation
--ECB staff forecasts to show higher inflation in 2011, 2012
--ECB may revert to variable-rate tenders for three-month refis
By Nina Koeppen
Of DOW JONES NEWSWIRES
FRANKFURT (Dow Jones)--European Central Bank President Jean-Claude Trichet on Thursday is expected to step up his warnings about rising euro-zone inflation and about those banks that continue to heavily rely on the central bank for liquidity.
Although a rate hike doesn't appear imminent, Trichet is likely to use Thursday's press conference to prepare the market for upcoming changes to the ECB's special liquidity provisions to euro-zone banks, signaling that interest rates won't stay at current emergency levels indefinitely.
"We expect a number of announcements to indicate the tightening cycle is getting closer," RBS economists wrote in a note to clients.
Trichet will point to increasing risks to price stability in the 17 countries that use the euro. Economists say he may even go so far as to warn about "upside risks" to the region's inflation outlook over the medium term. Trichet said at February's press briefing that inflation risks "are still broadly balanced but...could move to the upside."
"It might be that the Governing Council, for the first time since May 2009, will not regard current key interest rates as appropriate," said Citigroup chief European economist Juergen Michels.
All 47 economists in a Dow Jones Newswires poll said the ECB will keep its benchmark rate unchanged at 1% Thursday. But most economists say rates will rise in the fourth quarter, and possibly earlier.
The inflation hawks at the ECB's rate-setting council also got fresh ammunition from official data published Tuesday, which showed inflation rising further above the critical 2% mark.
Euro-zone inflation hit a 28-month high of 2.4% in February, according to preliminary data from the European Union's Eurostat agency. The outcome is well above the ECB's objective of keeping inflation "below, but close to" 2% over the medium term.
Separately, a pickup in inflationary pressures prompted the European Commission on Tuesday to lift its 2011 inflation forecast for the euro zone, to 2.2% from 1.8% previously.
Trichet on Thursday will also reveal fresh economic forecasts by ECB staff that are expected to show an upward shift in inflation projections for this year and next.
"We expect that the ECB staff will increase its mid-point inflation forecast for 2011 to 2.3%...and for 2012 to 1.9%," Michels said. Staff at the ECB and the euro zone's national central banks--known as the Eurosystem--forecast in December that inflation will average around 1.8% this year and 1.5% in 2012.
"[But] a more tangible tightening step will be the decision on the tender operations for the coming quarter," Commerzbank economist Rainer Guntermann said, referring to the auctions at which banks cover their cash needs. He argued that the ECB could, starting in the second quarter, switch to a variable-rate tender in its three-month refinancing operations as the ECB aims to gradually unwind its special liquidity support to banks.
At the height of the credit crisis in October 2008 the ECB decided to provide cash-strapped banks with as much liquidity as needed through its normal and extraordinary refinancing operations at a fixed rate.
But the shift won't to be abrupt. "The ECB is likely to commit itself to a generous allotment in upcoming long-term refinancing operations. Moreover, the weekly and one-month tender operations are likely to be unaffected, for now," Guntermann said.
Read this, this is important
--Trichet to step up warnings on inflation, addicted banks
--Trichet may highlight "upside risks" to inflation
--ECB staff forecasts to show higher inflation in 2011, 2012
--ECB may revert to variable-rate tenders for three-month refis
By Nina Koeppen
Of DOW JONES NEWSWIRES
FRANKFURT (Dow Jones)--European Central Bank President Jean-Claude Trichet on Thursday is expected to step up his warnings about rising euro-zone inflation and about those banks that continue to heavily rely on the central bank for liquidity.
Although a rate hike doesn't appear imminent, Trichet is likely to use Thursday's press conference to prepare the market for upcoming changes to the ECB's special liquidity provisions to euro-zone banks, signaling that interest rates won't stay at current emergency levels indefinitely.
"We expect a number of announcements to indicate the tightening cycle is getting closer," RBS economists wrote in a note to clients.
Trichet will point to increasing risks to price stability in the 17 countries that use the euro. Economists say he may even go so far as to warn about "upside risks" to the region's inflation outlook over the medium term. Trichet said at February's press briefing that inflation risks "are still broadly balanced but...could move to the upside."
"It might be that the Governing Council, for the first time since May 2009, will not regard current key interest rates as appropriate," said Citigroup chief European economist Juergen Michels.
All 47 economists in a Dow Jones Newswires poll said the ECB will keep its benchmark rate unchanged at 1% Thursday. But most economists say rates will rise in the fourth quarter, and possibly earlier.
The inflation hawks at the ECB's rate-setting council also got fresh ammunition from official data published Tuesday, which showed inflation rising further above the critical 2% mark.
Euro-zone inflation hit a 28-month high of 2.4% in February, according to preliminary data from the European Union's Eurostat agency. The outcome is well above the ECB's objective of keeping inflation "below, but close to" 2% over the medium term.
Separately, a pickup in inflationary pressures prompted the European Commission on Tuesday to lift its 2011 inflation forecast for the euro zone, to 2.2% from 1.8% previously.
Trichet on Thursday will also reveal fresh economic forecasts by ECB staff that are expected to show an upward shift in inflation projections for this year and next.
"We expect that the ECB staff will increase its mid-point inflation forecast for 2011 to 2.3%...and for 2012 to 1.9%," Michels said. Staff at the ECB and the euro zone's national central banks--known as the Eurosystem--forecast in December that inflation will average around 1.8% this year and 1.5% in 2012.
"[But] a more tangible tightening step will be the decision on the tender operations for the coming quarter," Commerzbank economist Rainer Guntermann said, referring to the auctions at which banks cover their cash needs. He argued that the ECB could, starting in the second quarter, switch to a variable-rate tender in its three-month refinancing operations as the ECB aims to gradually unwind its special liquidity support to banks.
At the height of the credit crisis in October 2008 the ECB decided to provide cash-strapped banks with as much liquidity as needed through its normal and extraordinary refinancing operations at a fixed rate.
But the shift won't to be abrupt. "The ECB is likely to commit itself to a generous allotment in upcoming long-term refinancing operations. Moreover, the weekly and one-month tender operations are likely to be unaffected, for now," Guntermann said.
Read this, this is important
- #398,355
- Mar 1, 2011 10:12am Mar 1, 2011 10:12am
- Joined Oct 2008 | Status: sideline is a position | 105,124 Posts
those who can, do. those who cant, talk about those who can
