Seeking to spur bank lending and pull the economy out of recession, the European Central Bank poured 442 billion euros (375.6 billion pounds) of one-year funds into money markets on Wednesday, its biggest fund injection ever.
The massive loan, the central bank's first money market operation with a term as long as one year, immediately pushed some bank-to-bank borrowing costs to fresh record lows.
That, the ECB hopes, may give banks enough financial security for them to make more long-term loans to companies and consumers.
A record 1,121 banks rushed to take up the ECB's offer of umlimited funds at a fixed rate of 1 percent, betting they might not see such cheap money again. Recent data suggests the euro zone economy may start a slow recovery late in 2009, making the ECB unlikely to cut interest rates further.
the European Central Bank poured 442 billion euros (375.6 billion pounds) of one-year funds into money markets
Thursday, June 25, 2009
Friday, June 19, 2009
Japan's government: world's No.2 economy has bottomed out
Japan's government raised its assessment of the economy for the second straight month and said the world's No.2 economy has bottomed out as exports and factory output recover from sharp declines.
The government lowered its outlook on capital expenditure, however, after Finance Ministry data earlier this month showed corporate spending posted a record fall in the first quarter from a year earlier, signalling that weak domestic demand will weigh on the recovery from the worst recession since World War Two.
'While the economy is in a difficult situation, movements of picking up are seen in some areas,' the Cabinet Office said in the monthly report released on Wednesday.
The report omitted an expression used to describe the economy last month, when it said 'the pace of deterioration is slowing'.
The upgrade is equivalent to saying Japan has hit bottom but further weakness cannot be ruled out, a Cabinet Office official said.
Full post at: Japan govt says economy bottomed out, upgrades view
The government lowered its outlook on capital expenditure, however, after Finance Ministry data earlier this month showed corporate spending posted a record fall in the first quarter from a year earlier, signalling that weak domestic demand will weigh on the recovery from the worst recession since World War Two.
'While the economy is in a difficult situation, movements of picking up are seen in some areas,' the Cabinet Office said in the monthly report released on Wednesday.
The report omitted an expression used to describe the economy last month, when it said 'the pace of deterioration is slowing'.
The upgrade is equivalent to saying Japan has hit bottom but further weakness cannot be ruled out, a Cabinet Office official said.
Full post at: Japan govt says economy bottomed out, upgrades view
Wednesday, June 10, 2009
Economists see pause in recession
By Chris Giles and Daniel Pimlott
Published: June 7 2009 22:02 Last updated: June 7 2009 22:02
The recession is over for now, the majority of City economists polled by the Financial Times believe.
In a survey conducted at the end of last week, 11 out of 20 economists said the economy had stopped contracting in June and was likely to start growing in coming months. The majority of those believing the economy was still shrinking thought the bottom of the downturn was near.
The survey suggests the government’s forecast in the Budget that growth would return only by the fourth quarter of this year may have been too pessimistic. It also offers hope for Gordon Brown that if he can hold on to his job he may be able to reap the benefits of an upturn.
Full Article: Economists see pause in recession
Published: June 7 2009 22:02 Last updated: June 7 2009 22:02
The recession is over for now, the majority of City economists polled by the Financial Times believe.
In a survey conducted at the end of last week, 11 out of 20 economists said the economy had stopped contracting in June and was likely to start growing in coming months. The majority of those believing the economy was still shrinking thought the bottom of the downturn was near.
The survey suggests the government’s forecast in the Budget that growth would return only by the fourth quarter of this year may have been too pessimistic. It also offers hope for Gordon Brown that if he can hold on to his job he may be able to reap the benefits of an upturn.
Full Article: Economists see pause in recession
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