The nomination of Christine Lagarde as European Central Bank president on Tuesday has thrust the International Monetary Fund into an early, unanticipated search for a new leader amid a raging trade war that has darkened the outlook for global growth.
Interest rates in the Euro zone will not rise until next year at the earliest, the European Central Bank has signaled amid evidence of a slowdown in the 19 countries using the single currency. The ECB also unveiled a round of fresh stimulus, offering banks cheap loans to try to help revive the economy.
Stocks in Europe reversed earlier gains by Thursday's close to finish lower, as investors digested fresh news out of the central banking sphere. The pan-European STOXX 600 closed down 0.15%, with the majority of sectors falling into negative territory. The U.K.'s FTSE 100 slipped 0.43% by the close, while France's CAC 40 ended a touch lower, off 0.08%, and Germany's DAX rose 0.19%.
The European Central Bank (ECB) has confirmed it will end a huge program to stimulate the Euro-zone economy in December. The ECB will stop its bond-buying scheme, worth €30bn a month, despite a recent slowdown in the bloc's recovery.
The world is on a crash course as people's hopes collide with a future in which millions of jobs are automated, the World Bank chief has said. Jim Yong Kim said policymakers should take action by investing in education and health. The World Bank president spoke in New York ahead of the group's annual meeting in Washington DC this week.
The Euro has hit US$1.20 for the first time since January 2015 as the prospect of a US interest rate rise recedes. Hurricane Harvey's impact has led analysts to assume the US central bank will not want to risk curbing economic growth and fears over North Korea's activities have unnerved investors.
The European Central Bank left its key interest rates and its bond-buying stimulus program unchanged on Thursday as it seeks more data on the strength of Europe’s modest economic recovery. The decision came at a meeting of the bank’s 25 member governing council at its headquarters in Frankfurt, Germany.
The European Central Bank made no changes to its current monetary policy on Thursday, leaving interest rates unaltered and taking no decision on whether to further stimulate the Euro-zone economy. The ECB’s governing council left the main refinancing rate at zero percent and the deposit rate at -0.4%, as expected.
European Central Bank President Mario Draghi brushed off German criticism of his ultra-loose monetary policy on Thursday and vowed to use all the tools at his disposal for “as long as needed.” He said the ECB's policy was working, which helped boost the Euro.
European Central Bank President Mario Draghi has fought back against critics, insisting the bank's policies will help to raise inflation. Eurozone inflation is currently 0.2%, way below the ECB's target of near 2%. But Mr Draghi insisted that the central bank would meet its obligations.