Daily Archives: October 25, 2012

Claire Jones

European Central Bank data, out Thursday, showed that the amount of cash that businesses and households are parking in Spanish banks rose in September for the first time since the spring.

Deposits held by Greek and Italian banks also rose last month, while those parked in German banks dipped slightly.

One swallow does not make a summer. But residents of the Eurotower will be cautiously optimistic that the fact that banks in Greece and Spain are no longer haemorrhaging deposits shows that one of the aims of the ECB’s Outright Monetary Transactions programme is being fulfilled with the central bank yet to buy a single bond. 

close up of the Bank of England sign©EPA

At ease: the BoE has put £375bn into the UK economy

Two questions arise when the lacklustre performance of the UK economy is discussed: what more should be done? And what more can be done?

Sir Mervyn King, governor of the Bank of England, gave pretty clear answers to both in a speech on Tuesday night