European Central Bank

Eurozone inflation dropped to a fresh five-year low in August, data showed on Friday, something likely to concern the European Central Bank but not force it into immediate policy action.

Consumer prices in the 18 countries using the euro rose by just 0.3 percent year-on-year in August, the smallest increase since October 2009, the European Union’s statistics office Eurostat said.

By Christos Ziotis

Greece's four biggest banks are seeking as much as 5.4 billion euros ($7.1 billion) from the European Central Bank's first auction of cash aimed at boosting loans to companies and households, according to people with direct knowledge of the plans.

A European Central Bank scheme aimed at easing credit conditions in the eurozone was said to have topped the agenda of talks on Thursday between Finance Minister Gikas Hardouvelis and Benoit Coeure, a member of the ECB's managing board who is on an official visit to Athens.

By Marius Zaharia

Spanish inflation came in at minus 0.5 percent, higher than expectations of minus 0.6 percent but lower than in July. German inflation due at 1200 GMT was expected to be unchanged at 0.8 percent.

Greek 10-year bond yields dropped to a record 5.57 percent on Wednesday, breaking the previous record of 5.58 percent, set on June 10.

The development is in line with the wider climate that has prevailed in European markets since ECB President Mario Draghi said on Friday that the bank was prepared to respond with all available tools if eurozone inflation drops further.

GERB has called for drastic reforms and replacement of the central bank’s governing council should the party win majority in the upcoming snap vote.

By Simon Kennedy & Alessandro Speciale

Mario Draghi just pushed the European Central Bank closer to quantitative easing.

With euro-area data this week likely to show the weakest inflation since 2009, the ECB president used the high-powered central-banking conference in Jackson Hole, Wyoming, to warn that investor bets on prices have “exhibited significant declines.”

By Lukanyo Mnyanda

European government bonds surged, pushing yields from Germany to Spain down to records, after European Central Bank President Mario Draghi gave his strongest signal yet officials are moving closer to quantitative easing.

 Greek ministers will be looking at timetables, actions and taxes with troika officials at start of September

The Greek government has begun finalizing its negotiating strategy for the imminent talks with troika officials in Paris, setting four clear priorities for the September meeting.

Spanish government bonds rose, with 10-year yields approaching a record low, amid speculation European Central Bank President Mario Draghi will reiterate the need for accommodative monetary policy.