The European Central Bank approved a fresh stimulus package as expected on Thursday, cutting interest rates and approving a new round of bond purchases to prop up euro zone growth and halt a worrisome drop in inflation expectations.
Facing a protracted growth slowdown, the ECB cut rates deeper into negative territory on Thursday and relaunched fresh bond purchases with no scheduled end-date, a move that divided the normally collegial Governing Council.
At an informal meeting of euro zone finance ministers in Helsinki on Friday, Greek Finance Minister Christos Staikouras presented his plan to repay earlier about 3 billion euros of IMF loans, which carry a punitively high interest rate of 5.1%.
Adding to the challenges policymakers face, Japan’s core consumer inflation is seen in the poll as slipping to the lowest level in more than two years, largely thanks to weaker energy prices.
The government of the anti-establishment 5-Star and the far-right League, which quit the coalition in August, had set a target of raising 18 billion euros ($19.93 billion) this year from the sale of public assets.
The German economy contracted by 0.1% quarter-on-quarter in the April-June period and some weak data since then has fueled concerns that the economy could slip into recession in the July-September period.
1. China encourages trade hopes
A cut in banks’ reserve requirement ratio may also come this month or in October, with a reduction possible at the Sept. 26 rate meeting, Diokno told reporters in Tarlac province north of the Philippine capital on Friday.
NEW YORK (Reuters) – With U.S.-China trade tensions roiling markets, investors are counting on support for stocks coming from a Federal Reserve willing to keep cutting interest rates to help the U.S. economy avoid a severe downturn.
The median forecast of 10 economists in the poll was for the country to record a $190 million surplus in August, compared with the revised $64 million deficit in July.