Slump in eurozone manufacturing could prompt ECB to cut rates
With manufacturing in all eurozone member states contracting, analysts say GDP in the currency bloc is likely to have dropped in the first quarter.
Here's Howard Archer of IHS Global Insight:
The deeper contraction in Eurozone manufacturing activity in March is both disappointing and worrying. It now looks odds-on that the Eurozone suffered further GDP contraction in the first quarter of 2013, likely around 0.3% quarter-on-quarter, while the increased drop in orders and declining backlogs of work does not bode at all well for second quarter prospects.
But he does not expect the European Central Bank to rush to cut rates in order to try and drive a recovery.
Despite mounting signs that the already weak Eurozone economic situation is deteriorating anew and muted inflationary pressures, the ECB still seems likely to hold off from cutting interest rates at its April policy meeting on Thursday.
The ECB currently appears reluctant to take interest rates down from 0.75% to 0.50%, partly due to some doubts that such a move would have a beneficial impact given current fragmented conditions in credit markets. And there is a risk that this fragmentation could be magnified by the recent events in Cyprus.However, some governing council members did favour an interest rate cut in March, and we suspect that likely ongoing disappointing Eurozone economic news will increasingly prod the ECB towards acting within the next few months. We suspect that the ECB will eventually take interest rates down from 0.75% to 0.50%, very possibly around June.
2 comments:
More than 100 customer consultants at Deutsche Bank Singapore helped create or manage 309 offshore entities for its customers in the British Virgin Islands and other tax havens, according to secret records obtained by the news organizations.
Aha, perhaps this is why the Money Laundering Risk Index issued by the Basel Institute, which is funded by the IMF, OECD and World bank among others, ranks Germany @ position 68 slightly better than Morocco @ 60 and worse than Mexico @72 (the lower the number the higher the risk).
In comparison, Cyprus @ position 114 seems to be much closer to the most innocent of all banking sectors that of Norway @ position 144.
Do you know if Deutsche Bank helped any Russian clients transfer any blood infused mafia money by the way?
In any case, sociologists may comment that Deutche Bank has given a brand new definition to the protestant work ethic: "ze more offshore accounts ve can open ze better for ze people and fatherland" :) I wonder what would Martin Luther and Emile Durkheim say about this :)
Consumers should no longer have to pay excessive fees on credit and debit card payments online, under new rules imposed tomorrow.
Retailers are no longer allowed to charge fees that exceed the cost incurred by the trader.
The Consumer Rights (Payments Surcharge) Regulations will allow retailers to charge a small amount that reflects the true cost of processing a debit or credit card payment.
The most notable cases of excessive charges have occurred when consumers book flights or theatre and cinema tickets. But the ban will cover all industries, including local councils and the DVLA – who have imposed these charges in the past.
The ban was originally due to be rolled out next year, but the Government has brought it forward in line with the rest of Europe.
Consumers should no longer have to pay excessive fees on credit and debit card payments online, under new rules imposed tomorrow.
Retailers are no longer allowed to charge fees that exceed the cost incurred by the trader.
The Consumer Rights (Payments Surcharge) Regulations will allow retailers to charge a small amount that reflects the true cost of processing a debit or credit card payment.
The most notable cases of excessive charges have occurred when consumers book flights or theatre and cinema tickets. But the ban will cover all industries, including local councils and the DVLA – who have imposed these charges in the past.
The ban was originally due to be rolled out next year, but the Government has brought it forward in line with the rest of Europe.
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