European Central Bank signals continued low interest rates despite German pressure

Toland

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Mario Draghi of the ECB has confirmed its promise to keep interest rates down in the long term despite pressure from the German Government and Central Bank.

The ECB is due to announce its long term policy on economic stimulation in a fortnight or so. Draghi is signalling in advance that there'll be no change in its current policy of promoting investment through low interest rates.

German authorities want to cool their economy down and increase returns for savers (Germans are still great savers).

https://www.rte.ie/news/business/2017/1013/912065-ecbs-draghi-on-rates/

So it seems apparent that despite all the rumours, Germany is not in absolute control of the ECB.
 


mr_anderson

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So it's going to be Germany v The Rest of the EU.
Brings me back to the old ERM days.
 

devoutcapitalist

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How sustainable is It to keep interest rates at very low levels?

From an Irish perspective It's not in our interests as there is a house price bubble at the moment.
 

statsman

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How sustainable is It to keep interest rates at very low levels?

From an Irish perspective It's not in our interests as there is a house price bubble at the moment.
Primarily a supply-side problem, surely?
 

Mick Mac

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Germany is obsessed with savings. There like ameri in the 20s. Blind to their position in the wider economy. They won't spend and not must anyone else spend.
 

Toland

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How sustainable is It to keep interest rates at very low levels?

From an Irish perspective It's not in our interests as there is a house price bubble at the moment.
Same in Berlin at the moment. Partially due to low interest rates and partially because of a genuine housing shortage. There's a lot of building going on at the moment. Especially housing.

There does seem to be a fair bit of air in the Blancmange. The proliferation of start-ups is suspicious, though they may turn out all to be making stuff that people need (hmmm).
 

Mick Mac

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How sustainable is It to keep interest rates at very low levels?

From an Irish perspective It's not in our interests as there is a house price bubble at the moment.
European economy is fragile. It's banks are working to stabilise.

Like it or not they need low interest rates.
 

Spirit Of Newgrange

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So really low tracker rates are here to stay :)

Hopefully for about 10 years.
you seem happy about this ? thus our house prices will continue to escalate into another Celtic tiger, and maybe another crash. Not to mention the homeless crisis.
 

gerhard dengler

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Mario Draghi was head bottle washer at the Italian Central Bank in the early noughties.

His legacy as head bottle washer is today's utterly broken Italian banking system.

Be careful what you wish for.


ECB, like the other main central banks, have boxed themselves in to a corner of their own making.
These central banks may want to cease QE, but circumstances have changed to where the entire financial system is in lockstep with QE.
On one level it is really interesting to observe this phenomenon.
 
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Volatire

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euro has been too strong lately, rates needs to stay low
 

devoutcapitalist

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Germany is obsessed with savings. There like ameri in the 20s. Blind to their position in the wider economy. They won't spend and not must anyone else spend.
What's wrong with been tight arsed with money, shame many Irish people weren't frugal with money and by extension our politicians when dealing with public spending during the Celtic Tiger.
 

hammer

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you seem happy about this ? thus our house prices will continue to escalate into another Celtic tiger, and maybe another crash. Not to mention the homeless crisis.
FFS.

I`m only happy because it keeps the wolf from the door for many thousands with trackers.

Another crash ? Are we really that stupid ?
 

GDPR

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Mario Draghi of the ECB has confirmed its promise to keep interest rates down in the long term despite pressure from the German Government and Central Bank.

The ECB is due to announce its long term policy on economic stimulation in a fortnight or so. Draghi is signalling in advance that there'll be no change in its current policy of promoting investment through low interest rates.

German authorities want to cool their economy down and increase returns for savers (Germans are still great savers).

https://www.rte.ie/news/business/2017/1013/912065-ecbs-draghi-on-rates/

So it seems apparent that despite all the rumours, Germany is not in absolute control of the ECB.
Yeah, it's almost as though they'd be happy for this story to leak out.
Those German lads should have been politicians.
 

devoutcapitalist

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FFS.

I`m only happy because it keeps the wolf from the door for many thousands with trackers.

Another crash ? Are we really that stupid ?
Yes Paddy and Biddy politician are that stupid when It comes to repeating the same mistakes all over again.
 


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