Sunday, December 8, 2019 | ePaper

Trump cries currency manipulation over ECB talk of rate cuts

  • Print
AFP, Frankfurt Am Main :
European Central Bank chief Mario Draghi sparked anger from US President Donald Trump on Tuesday, when his hint at future interest rate cuts lifted eurozone markets and pushed the euro down against the dollar.
"Mario Draghi just announced more stimulus could come, which immediately dropped the Euro against the Dollar, making it unfairly easier for them to compete against the USA," Trump said via Twitter.
"They have been getting away with this for years, along with China and others," he added.
Hours earlier, Draghi had told a conference in Sintra, Portugal that "further cuts in policy interest rates… remain part of our tools" as the bank looks to juice growth and inflation.
Eurozone policymakers had already discussed potential rate cuts at a regular meeting of the ECB's governing council in early June, but Draghi's Tuesday remarks were the first to catch markets' attention.
They sent Germany's DAX index of blue-chip shares back into the black from negative territory - up 1.5 percent around 2:45 pm (1200 GMT) - and pushed the euro down as much as 0.3 percent against the dollar, to $1.12, before rebounding slightly.
It was "the clearest indication yet that the bank will cut interest rates and relaunch its asset purchase programme in the coming months if… measures of inflation and inflation expectations remain very low," said Andrew Kenningham of Capital Economics.
From the start of his presidency in 2017, Trump accused trading partners like China and eurozone heavyweight Germany of currency manipulation.
Both countries, along with others like Japan and South Korea, remain on a Washington watchlist, the US Treasury department said last month, but have not been formally singled out as manipulators.
The ECB blames weakening economic growth on US trade conflicts with the EU and China, as well as the looming threat of a no-deal Brexit and slower performance from emerging economies.
Sluggish expansion has in turn kept inflation short of the central bank target.
At 1.2 percent in May, price growth was well short of the ECB goal of just below two percent.
"In the absence of improvement, such that the sustained return of inflation to our aim is threatened, additional stimulus will be required," Draghi said.
Aside from rate cuts, other moves could include restarting "quantitative easing" (QE) purchases of government and corporate debt, which amounted to 2.6 trillion euros ($2.9 trillion) between 2015 and 2018.
After months of speculation about when North Atlantic central banks would raise rates, the slowdown has turned the conversation around.

More News For this Category

China-Bangladesh jointly owned M/s. Ship-Smart Data Technology (Bangladesh) Co., Limited is going to set up a high-tech data connecting cable manufacturing industry in Chattogram EPZ. Regarding this Bangladesh Export Processing Zones Authority (BEPZA) and the company signed an agreement while Executive Chairman of BEPZA Major General S M Salahuddin Islam and Zhonggui Zhang, Director of the company took part in the deal signing ceremony at BEPZA complex in the city recently.

China-Bangladesh jointly owned M/s. Ship-Smart Data Technology (Bangladesh) Co., Limited is going to set up a high-tech data connecting cable manufacturing industry in Chattogram EPZ. Regarding this Bangladesh Export Processing Zones Authority (BEPZA) and the company signed an agreement while Executive Chairman of BEPZA Major General S M Salahuddin Islam and Zhonggui Zhang, Director of the company took part in the deal signing ceremony at BEPZA complex in the city recently.

.

All-day digital money transfer to be available :RBI

Xinhua :India's central banking institution Reserve Bank of India (RBI) said round-the-clock transactions will be available under the National Electronic Funds Transfer (NEFT) system from Dec. 16 to promote

LafargeHolcim tops turnover for second week

Economic Reporter :LafargeHolcim Bangladesh Ltd dominated the Dhaka bourse's turnover chart for the second consecutive week that ended on Thursday.Ten most traded companies accounted for one-fifth transactions on the

M. Kamal Hossain, Managing Director of Southeast Bank Limited, receiving the

M. Kamal Hossain, Managing Director of Southeast Bank Limited, receiving the "19th ICAB National Award for Best presented Annual Reports 2018" by South Asian Federation of Accountants (SAFA) from Commerce Minister Tipu Munshi, at a hotel in the city recently.

.

BD becomes self-sufficient in fish production: Khasru

Rajshahi Correspondent :State Minister for Fisheries and Livestock Md Ashraf Ali Khan Khasru on Saturday said that Bangladesh has attained self-sufficiency in fish production as the country's per capita

ICCB's confce on financing for sustainable development to begin Tuesday

Economic Reporter :The International Chamber of Commerce, Bangladesh (ICCB) is going to organise a three-day conference on financing for inclusive and sustainable development in Dhaka from Tuesday.The event, titled

Govt lowers fertilizer price for agro dev: Razzaque

Govt lowers fertilizer price for agro dev: Razzaque

Economic Reporter :Agriculture Minister Dr Mohammad Abdur Razzaque on Saturday said that the government has lowered price of fertilizer for the fifth time to reduce the cost of agro

ADB signs 2nd alternative procurement arrangement for cofinanced projects

ADB signs 2nd alternative procurement arrangement for cofinanced projects

BSS, Dhaka :The Asian Development Bank (ADB) recently signed an agreement with the European Bank for Reconstruction and Development (EBRD) on alternative procurement arrangements (APA), allowing cofinanced projects to

Onion prices still eye-watering despite imported onions hit markets

Economic Reporter :Prices of onions are still eye-watering despite different types of onions imported from several countries are now available in the kitchen markets across the country Bangladesh.Some of

Md. Abdul Wadud, DMD of City Bank Limited and Mohammed Rokunuzzaman Milon, Chairman of Indesore Sweater Limited, exchanging an agreement signing document at the garment's head office in Gazipur recently. High officials from both the organizations were present.

Md. Abdul Wadud, DMD of City Bank Limited and Mohammed Rokunuzzaman Milon, Chairman of Indesore Sweater Limited, exchanging an agreement signing document at the garment's head office in Gazipur recently. High officials from both the organizations were present.

.