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Monday, November 12, 2012

European Bank of England is very calm and stability maintenance


Accompanied by the announcement of the voting results, the Greek government finally took a breather. Local 8, the Greek parliament narrowly passed the 13.5 billion euros in fiscal austerity case, hope this in exchange for aid and avoid bankruptcy.

The European Central Bank has also been a temporary holding stability and opportunity. In the end of the 8th meeting on interest rates, the bank announced the existing benchmark interest rate and monetary policy unchanged.

In addition, the Bank of England also announced on the 8th to maintain the existing scale of interest rates at 0.5% and the asset purchase program unchanged at 375 billion pounds.

Despite the ruling coalition of the Democratic Left Party chose to abstain, but Greek Prime Minister Georgios Samaras belongs to the New Democratic Party and its partners in the Pan-Hellenic Socialist Movement Party this more than 500-page bill by midnight.

Vote in favor of the austerity measures in the Greek Parliament has 300 seats, 153 members, 128 voted against the motion, while 18 members abstained.

The bill covers most of the 13.5 billion euros austerity plan measures started the prelude to the 2013 budget bill, the Government is expected to be in this weekend to promote the 2013 budget bill clearance.

But this does not mean that the Greek government can sit back and relax. The data published in the 8th, Greece August unemployment rate climbed to a new record high of 25.4%. Schaeuble, the German finance minister, a day after the next week to decide whether to approve further aid to Greece may still be too early.

The economic situation of the euro area as a whole is also worrying. The European Commission pointed out that the euro-zone economy next year will be close to zero growth, but the growth rate will rebound in 2014. The European Commission pointed out that the economy of the 17 euro zone countries in 2013 will be increased by only 0.1% this year, shrinking magnitude is expected to be 0.4%, weaker than the previous forecast, mainly due to the impact of the sovereign debt crisis.

The European Commission also warned that, I am afraid that France next year's public debt fell to the upper limit of the EU regulations target can not be reached, because of the tax increases in the fiscal austerity measures weaken economic growth.

However, the ECB still choose to do anything. The bank announced the benchmark interest rate at 0.75% level unchanged.

European Central Bank President Mario Draghi has said on the 7th, the new ECB debt purchase plan allows no upper limit on the sovereign debt market intervention should be able to dispel concerns about the euro zone or the collapse of. He also said that the funds are beginning to return to the 17 euro zone countries, including those in troubled countries.

Mario Draghi as president of the European Central Bank about a year's time, has been through the ultra-long-term loans to inject € 1 trillion into the financial system, and for the first time the benchmark interest rate down to 1% or less, not Gude Guo central bank's opposition to the introduction of direct monetary trading (OMT) plans to buy the debt crisis in the country's national debt when needed.

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