The euro’s tumble towards parity against the dollar has pushed the European Central Bank (ECB) back against a wall, leaving its policymakers with only painful and economically costly choices.
Euro banknotes are displayed in this picture illustration taken Nov. 14, 2017. — REUTERS/BENOIT TESSIER/ILLUSTRATION
The bank has so far played down the issue, arguing that it has no exchange rate target, even if the currency does matter. Even the accounts of its June policy meeting published on Thursday indicated no particular concern. But the market moves are now too big to play down. While Fed Chair Jerome Powell has made clear he was willing to risk a recession with oversized rate hikes to bring down inflation, the ECB continues to take baby steps in unwinding the exceptionally easy policy of the past decade, when inflation was too low.
That gives investors higher profits on the other side of the Atlantic, so they are moving cash out of Europe and weakening the euro in the process.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
ECB test of bank climate risk deals softer blow than feared | Nicholas Comfort & Steven Arons / Bloomberg OpinionEurope’s landmark test of banks’ resilience to global warming was far softer than many lenders had expected, according to people familiar with the matter. Even the toughest hypothetical scenarios in the European Central Bank’s climate stress test didn’t result in losses that would make a meaningful dent in capital buffers,…
Read more »
Unbeaten Filipinas face Malaysia in ASEAN Football Federation - BusinessWorld OnlineFirst, the Philippines shocked fancied Australia in a homecoming game to remember. Then the host nation ripped Singapore in a seven-star performance.
Read more »
Marcos Jr.’s big promises to Philippines face economic reality - BusinessWorld OnlineAfter the initial euphoria from a landslide victory on promises of a building binge, more jobs, cheaper food and tax breaks, Philippines’ new President Ferdinand Marcos Jr. is finding that his populist pledges are running into reality. The government simply lacks the fiscal space to allow tax concessions, or spend big on building bridges, roads […]
Read more »
Bill granting 15 days’ paid leave for workers on caregiver duty refiled - BusinessWorld OnlineA BILL has been refiled in the Senate guaranteeing 15 days’ paid leave to public and private sector workers who have to serve as caregivers to relatives.
Read more »
Inflation nears 4-year high in June - BusinessWorld OnlineInflation climbed to its highest level in nearly four years in June, further eroding the purchasing value of the peso to a record low, the Philippine Statistics Authority (PSA) said on Tuesday.
Read more »