European Central Bank President Mario Draghi pushed for yesterday’s interest-rate cut over opposition from Bundesbank President Jens Weidmann and at least two other Governing Council members, according to four euro-area central bank officials.
The European Central Bank and the People’s Bank of China agreed to establish a bilateral currency swap line, bolstering access to trade finance in the euro area and strengthening the international use of the yuan.
German Chancellor Angela Merkel’s choice of coalition partner will play a key role in deciding how far the foreign-exchange market is burdened by a proposed financial-transactions tax in 11 European Union states.
France’s central bank chief rejected the view that the euro region is undergoing a systemic crisis, playing down the risk of contagion from Ireland’s turmoil and hailing the euro as a “tremendous success.”
European Central Bank Governing Council member Christian Noyer said policy makers remain in a mode of “strong vigilance” after this month’s interest-rate increase, Financial Times Deutschland reported, citing an interview.