Daily Archives: November 3, 2011

Claire Jones

Those hoping that today’s ECB cut would signal a softening of the central bank’s stance in other areas, notably its purchases of government debt, will have been disappointed by Mario Draghi’s comments at his first press conference.

Mario Draghi with Jean-Claude Trichet. Image by Getty.

Mario Draghi with Jean-Claude Trichet. Image by Getty.

Jean-Claude Trichet may have now decamped to Paris, or possibly St. Malo, but listening to Mr Draghi today, it was as though he had never left. Read more

Claire Jones

The ECB cuts rates! The main refinancing rate is lowered to 1.25 per cent. Mario Draghi is set to tell us why 45 minutes from now.

Its deposit and lending rates have also been cut by the same margin – 25 basis points. Read more

Mario Draghi could hardly have imagined a more urgent backdrop to his public debut today as European Central Bank president.

The escalating crisis triggered by Greece is increasing pressure for a swift cut in official borrowing costs and an expansion of the ECB’s government bond-buying programme.

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A bill making its way through Brazil’s Senate confirms what many economists have suspected for a while. Politicians in Brasília are preparing to widen the central bank’s mandate to focus not just on inflation but also on economic growth and employment creation.

At issue is the credibility of one of the central pillars of Brazil’s economic prosperity for more than a decade – the inflation-targeting regime. The bill, which was approved by the powerful economic commission of the senate this week and now must go to the full Senate and the lower house, is sponsored by Senator Lindbergh Farias of the governing Workers’ Party.

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