Banks should “meet their responsibilities” and pas on lower rates to customers, he tells a German news paper. The ECB has a little “wiggle room” on rates though the lower threshold is not far from where rates currently stand at 1.50%. (Most see the ECB cutting to 1% before embarking on some form of quantitative ease).
UPDATE: No sooner did the words quantitative ease leave our keyboard than Stark said we are not at the point where quantitative ease should be pursued. Zero interest rates would not necessarily kickstart the interbank market, he continued.
EUR/USD has taken on an easier tone in the last hour or so, easing along with US equities. Stocks are up about 0.9% after being up more than 2% earlier in the day. Stop loss sell orders are eyed in the 1.2965/75 region, we remind you again.
