Wednesday, June 24, 2009

ECB Pumps Record €442bn Into System

Talk about money pumping.

The European Central Bank has pumped a record €442.2bn into the eurozone banking system in a first-ever offer of unlimited one-year funds.

Demand for the one year funds – offered at the ECB’s main policy rate of just 1 per cent – was obviously strong given that that ECB interest rates are not likely to fall any further. This was a big hand out to banks that are part of the ECB system.

Bernanke has tightened here short-term but the ECB is certainly not following in those foot steps/

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