According to the declaration published on its website, the ECB continues to be responsible for ensuring price and financial stability in the euro area. The ECB can afford to ignore one of them. The ECB is not just facing a finance minister. The ECB sees itself largely as the heir to the best practice of monetary policy in Europe, that is, the traditionally stubborn approach of the German Bundesbank. The ECB is undoubtedly in the limelight today, but investors also hope that the Fed will make its contribution following the recent weak economic data. So far, the ECB has been far more reluctant to rescue governments and calm markets by buying bonds.
The eurozone is best understood as a family of individuals held together by strong, long-term bonds. The Eurozone is neither a nation nor a bunch of separate nations that hardly care about each other. The Eurozone is held together by strong political cohesion through the lessons learned from two catastrophic world wars by Germany, France and other nations.
The bank is prepared to provide additional liquidity in euros and foreign currencies as needed. Again, all banks in Europe appear to be identically positioned. The German central bank has long held against QE. Whoever controls the central banks of the EU countries controls the ECB. The European Central Bank is probably the most misunderstood central bank in the world. As expected, the interest rate remained unchanged at the central bank. LONDON (MarketWatch) The European Central Bank appears to be preparing to significantly change its interest rate approach, reject the idea of further interest rate cuts and signal a possible rise before monthly purchases of quantitative easing instruments gradually decline in the coming months.