Economists expect ECB to cut benchmark interest
rate
A survey found that most economists expect the European Central
Bank to lower its benchmark interest rate when policymakers meet
this week. The ECB might also ease collateral requirements,
offering banks easier access to inexpensive cash, sources said.
Bloomberg(07 Dec.)
Draghi is careful not to alienate Bundesbank
chief: Mario Draghi, president of the European
Central Bank, is working to ensure he doesn't alienate Jens
Weidmann, head of Germany's Bundesbank and a critic of the ECB's
bond buying. "Draghi is likely to be very conscious and aware of
the Bundesbank's perspective," said Julian Callow, chief European
economist at Barclays. "It's going to be a hard act for Draghi to
balance strong views for dramatic action and calls from Weidmann
for a more cautious approach." Bloomberg(08 Dec.)
BoE is expected to take wait-and-see
approach
Economists expect policymakers at the Bank of England to maintain
the central bank's £75 billion bond-purchase programme, as they
wait for answers from European officials to resolve the
sovereign-debt crisis. BoE Governor Mervyn King said Europe's debt
turmoil is beyond his control. Bloomberg(08 Dec.), Reuters(08 Dec.)
UK proposals on bankers' pay see mixed
reactions
The UK Treasury started a consultation process on measures aimed at
requiring banks to increase compensation disclosure to senior
nonboard executives. The proposals were met with mixed reactions
from the industry and other interested parties. BBC(07 Dec.)
Commentary: MiFID II could jeopardise capital
markets
Niki Beattie, CEO of consultancy Market Structure Partners, argues
that proposed amendments to the Markets in Financial Instruments
Directive could take European capital markets in a "dangerous
direction". Financial Times(tiered subscription model)(07
Dec.)
Think tank urges caution on China's fiscal and
monetary policies
The Chinese Academy of Social Sciences, a leading government think
tank, called on the government to maintain prudent monetary policy
and stable fiscal policy. The recommendations come amid
expectations that the economy will slow next year to 8.9% gross
domestic product growth. "The authorities should maintain the
current policies. Any further tightening or loosening of monetary
policy is inadvisable," said Chen Jiagui, director of the think
tank's economic department. China Daily (Beijing)(08 Dec.)
