ECB Governing Council

Bank of Greece Governor Yannis Stournaras has told Kathimerini he expects the European Central Bank to start reducing interest rates this summer, as inflation is easing much faster than expected.

Another quarter-point interest rate rise by the European Central Bank should be enough and further tightening might damage the economy, ECB Governing Council member Yannis Stournaras said in an interview with CGTN Europe on Wednesday.

The growing uncertainty about rising consumer prices require close monitoring by the European Central Bank, which sees it as a temporary trend, but it must be prepared to act sharply and flexibly, ECB Governing Council member Mario Centeno said, quoted by Reuters.

European Central Bank President Mario Draghi on Thursday put a definitive end to any hopes of Greece's inclusion in the bond-buying program (QE) and the extension of the waiver that allows Greek debt to be accepted as collateral for regular auctions of ECB cash, despite the junk rating of Greek bonds.

Germany's Deutsche Bank is financially sound and doesn't have any problem other than the US demanding it pay up to $14 billion in fines for miss-selling mortgage-backed securities, ECB Governing Council member Yannis Stournaras said on Tuesday.

Banks in Greece will reopen on Thursday, Germany's Frankfurter Allgemeine Zeitung (FAZ) reported on Monday.

The maximum daily limit of EUR 60 for cash withdrawals at ATMs will remain in force until banks reopen, the FAZ said on its website.

The European Central Bank (ECB) approved the amount of emergency funding (ELA) that Athens had requested for its banks on Thursday said a banking source.

“The Bank of Greece got approval for the ELA it requested. If necessary, the ECB Governing Council will convene again over the next 24 hours,” said the source without revealing the exact amount of funding.

Last week’s defiant words from the leftist SYRIZA government gave way to a more diplomatic mood on Monday, as Greek leadership tried to “mend fences” with European partners.
The developments came as G7 host Angela Merkel warned that time was running out to free-up cash left over in a second bailout package and avoid any risk of a Greek default.

The European Central Bank has not made any decision to raise the discount applied on the collateral offered by Greek banks, a source familiar with the matter told Reuters on Wednesday, declining to comment on whether the option was being discussed.

European Central Bank President Mario Draghi is warning investors not to bet against the euro. They don?t seem to have gotten the message.