European Central Bank
The European Central Bank (EVB) is possible for a further rate cut if the euro zone economy fails to recover amid extreme situation. The bank might print money and simply distribute it to European citizens, according to Peter Praet, a chief economist.
Investors were left disappointed after Mario Draghi, the ECB’s president unexpectedly announced another further rate cut. Thus, he was questioned on his 2012 pledge in saving the euro.
Meanwhile, the market remained steady on Thursday and ECB rates continued to stay at current or below levels for longer term.
However, Praet stated that the bank has not met its lower limit, considering the ECB has already know the negative impact of it.
When Praet was asked regarding printing of money, he stated that all central banks are able to do it and simply distribute it directly to euro zone citizens, it’s called a helicopter money.
Greek Reform Advances
Greece’s reform program is making progress and is expected to be wrapped up by May 1.
Klaus Regling, an economist said that there is a progress, however, it is too early to say that the review would be completed. He added, that the ESM anticipate Greece would be needing less than 86 billion euros.
The reform program had to be strictly separated from the refugee crisis, Regling said. As numbers of migrants currently swamped the country. Thus, he remained aloof on countries like Ireland, Portugal or Spain to knock resources of ESM.
Japan’s Suga Denies Report Accusing Abe Causes Delays on Tax Hike
Yoshihide Suga, the Chief Cabinet Secretary declined reports saying Shinzo Abe, the Prime Minister causes delays on the proposed sales-tax increase for the second time if the economy remained flat.
Abe considers about one- to two-year delay in the tax hike to 10 percent from 8 percent.
Suga stated that no further plans for the country to increase taxes next year, unless a major financial crisis or a natural disaster hit.
After the first-quarter growth figures was issued in May, Abe is expected to make a decision.
Meanwhile, Abe has insisted for long that he would delay the tax increase only in the event of Lehman Brothers bank, which collapsed and has massively affected the country’s global financial crisis.
In April 2014, the premier has raised taxes from 5 percent, as planned by the government in order to discuss the country’s considerable public debt. However, the economy only struggled into a recession.
Thus, he delays the second tax increase, which has to take effect last October.
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