Weber Signals ECB May Start Exit With 12-Month Loans (Update3) - Bloomberg.com

Weber Signals ECB May Start Exit With 12-Month Loans (Update3)

By Jana Randow and Rainer Buergin

Oct. 29 (Bloomberg) -- European Central Bank council member Axel Weber signaled the bank may start to withdraw its emergency stimulus measures next year by scaling back its “very long- term” loans to banks.

“Some of the new instruments will be needed longer than others,” Weber, who heads Germany’s Bundesbank, said in a speech in Berlin today. “From today’s perspective, the unlimited allotment in our main refinancing operations will have to be maintained for a longer period of time than the guarantee of very long-term liquidity.”

The comments are the first to indicate the ECB is getting closer to enacting its exit strategy. The Federal Reserve has already announced a phase-out of some of its emergency programs, while Bank of Japan policy makers are debating ending their purchases of corporate debt. They are still lagging smaller nations such as Norway and Australia, which have started to raise interest rates.

Banks should prepare for a “gradual withdrawal of the medicine provided by central banks,” Weber said. He added during a panel discussion that the withdrawal of emergency liquidity is likely to “play an important role next year” and indicated it may precede interest-rate increases, which “will come” when the ECB sees risks to price stability.

‘Ahead of the Curve’

“We won’t wait until employment picks up or unemployment rates fall to tighten,” Weber said. “That would definitely be too late. Our monetary policy must be ahead of the curve, not behind.”

The yield on the German 2-year notes rose 3 basis points to 1.31 after Weber’s remarks.

The ECB’s Governing Council next meets on Nov. 5. Weber said his comments shouldn’t be interpreted as a signal for current monetary policy. Some of his fellow council members struck a more cautious tone today.

Italy’s Mario Draghi said in Rome that while economies have stabilized, “we are less sure that a lasting recovery, which does not depend only on extraordinary economic policies, is actually under way.”

Belgium’s Guy Quaden signaled he doesn’t expect the ECB to change its policy stance anytime soon.

“It’s probable that in the coming months inflation will remain very weak and the economic recovery fragile,” Quaden told reporters in Brussels today. “Conclusions to draw for the monetary policy stance seem very obvious.”

German Inflation

Weber said inflation in Germany, Europe’s largest economy, will surpass 0.5 percent in coming months and accelerate toward 1 percent. Consumer prices stagnated in October from a year earlier after posting annual declines in the previous three months.

The Frankfurt-based ECB is lending banks as much money as they want for up to 12 months at its benchmark lending rate, which has been cut to a record low of 1 percent. It will offer banks 12-month loans for a third time this year in December.

It began offering unlimited funds in October last year after the September collapse of Lehman Brothers Holdings Inc. froze credit markets and sent the global economy into a tailspin. In March, ECB President Jean-Claude Trichet said the bank would maintain the lending policy for “as long as needed and in any case beyond the end of 2009.”

The ECB will discuss detailed exit plans in “due time on the basis of the available information,” Weber said today. “However, looking at the latest developments on financial markets and the corresponding stabilization on banks’ refinancing markets, it is inappropriate to continue the current operative regime without any changes for too long.”

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http://www.finanzas.com/noticias/eco...r-proximo.html

Weber sugiere que el BCE podría retirar el próximo año las subastas ilimitadas de fondos a un año
29/10/2009 - 17:55
- Noticias EUROPAPRESS

BERLIN (ALEMANIA), 29 (EUROPA PRESS)

El presidente del Bundesbank y miembro del consejo de Gobierno del Banco Central Europeo (BCE), Axel Weber, sugirió hoy que el instituto emisor europeo podría poner en marcha su estrategia de salida el próximo año con la retirada de las inyecciones ilimitadas de liquidez a un año, al reconocer que el continuo suministro de liquidez por parte de los bancos centrales "no es una opción" para un modelo sostenible.

"Algunos de los nuevos instrumentos serán necesarios durante mayor tiempo que otros", dijo Weber en un discurso pronunciado en Berlín. "Desde la perspectiva actual, el suministro ilimitado de liquidez en nuestras operaciones principales de refinanciación tendrá que mantenerse durante más tiempo que los compromisos de liquidez a muy largo plazo", apuntó.

Las palabras de Weber, calificado como uno de los 'halcones' en el seno del consejo del BCE, sugieren la posibilidad de que la institución presidida por Jean Claude Trichet no prorrogue una de sus principales medidas no convencionales para afrontar la crisis, como son las subastas ilimitadas de liquidez a tipo fijo con vencimiento a un año, cuya tercera, y en principio última operación, está prevista para el próximo mes de diciembre.

En este sentido, el banquero alemán afirmó que los mercados financieros y la economía global "salieron de urgencias y han sido trasladados a planta", por lo que destacó que "aún existen riesgos y no está plenamente garantizada la recuperación" para lo que será necesaria la retirada tan pronto como sea posible de la "extensa medicación de auxilio y un cambio en el comportamiento del paciente".

"No hay diferencias entre los mercados financieros y los pacientes que han sufrido un infarto", apuntó Weber, que reiteró la necesidad de que la retirada de las medidas no convencionales se lleve a cabo de manera gradual.

"Vivir con un suministro continuo de liquidez por parte de los bancos centrales no representa una opción de tratamiento para un futuro sostenible", concluyó Weber.

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La parte de la subida del Bund,

¿Se ha perdido en la traducción?

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