Daily Archives: June 8, 2011

Ralph Atkins

“I see no reason for introducing changes to the way we have conducted monetary policy in the past 12 years.” Thus states Mario Draghi early on in lengthy written evidence submitted to the European Parliament in support of his nomination as the next European Central Bank president.

As such, Mr Draghi confirms that central bankers will never make great journalists. It would have been rash for him to suggest anything other than continuity at the top of the ECB. The uncertain economic outlooks, “warrants an element of gradualism in changing standard and non-standard monetary policy,” he says.

His cautious style suggests Mr Draghi is still keen to win over hearts and minds, especially in Germany, where nervousness remains high about handing over responsibility for their currency to a southern European. Read more

Sterling has been knocked to a one month low against the euro on Wednesday after investors interpreted comments by Moody’s, the credit ratings agency, as a warning that Britain could lose its AAA rating.

The news and market reaction raise two questions. Did Moody’s issue a warning on the UK’s sovereign credit rating? If not, why did investors react as if it did?

The answers have important lessons for communications, whether they are from ratings agencies, central banks or international organisations Read more