BoE and ECB should ease! What’s to hold them back?
Eurozone finance ministers meet today in Luxembourg to discuss Greece and how they might respond to the international pressure to accelerate their efforts in putting in place a credible and larger mechanism (than the enhanced EFSF) for dealing with bailouts, bank recapitalisations and support operations in sovereign debt markets. It is doubtful though that the finance ministers will be galvanised into action; that is not quite the behaviour one has come to expect from them.
Although not in the giant league by assets, it may still be of interest to see what comes of today’s meeting with Dexia and the French and Belgian finance ministers as a guide or lead on what might be expected elsewhere. The three are meeting to see how the balance sheet of the Franco-Belgium financial services group, and big holder of Greek debt, might be strengthened. More >