Tomorrow the European Central Bank (ECB) may declare a series of new measures to stimulate crediting of the European banks. The options discussed include loosening the requirements for banks so that they have greater access to funds at the ECB and the provision of long-term loans to ensure the flow of credit to the economy, state officials asked for anonymity because of confidentiality of conversations. The two sources claim that the central bank is likely to again lower interest rates by a meeting tomorrow to be decided by how much. The ECB wants more to get banks to resume lending rather than increases the amount government bonds purchased. Eurozone governments to take measures to restore investor confidence seems to give results. Yields on Italian and Spanish government bonds fell after Germany and France agreed to build a fiscal union in the Eurozone.
“Tomorrow the ECB’s role will be largely associated with the banks is expected after the meeting liquidity in the sector to improve significantly”, said Silvio Peruzo, an economist at Royal Bank of Scotland Group Plc in London. “Division of tasks is quite clear , the ECB takes care of the banks and European governments on fiscal policy”, he said.

Barclays Capital said on Friday he expected the European Central Bank (ECB) to keep its key interest rate unchanged at 1.5% until December 2012 when the central bank will probably raise rates by a quarter point. In its previous forecast Barclays expected the ECB to raise interest rates a quarter point in December this year. The revision was announced after the British bank lowered its expectations for the eurozone as a whole. According to Barclays, the gross domestic product (GDP) of the eurozone in 2011 will grow by 1.8 percent instead of the originally projected 1.9%. Growth in 2012 even expected to reach only 1.1% instead of 1.6%. The bank analysts, including chief economist Julian Callow of Europe, indicate that even forecast to increase interest rates in December 2012 is “optimistic” and that this step may be postponed.
“There is a risk in the next 12 months, the ECB lowered its main interest rate by half a point, as part of coordinated action by the G-20″, they say. “In taking this step, however, the ECB will need to significantly lower their criteria for assessing the risks of inflation”.

Euro recorded strong growth of over 2 percent against the U.S. dollar yesterday, gaining support from weak U.S. economic data and encouraging signals of financial stability in the euro area. This caused a significant drop in the price of oil and gold, which yesterday lost more than 3% of its value. The single currency has reached the level 1,25 EUR / USD, which is its highest value since June 21. The appreciation came after news of another problem in the U.S. housing market and because of data problems in the labor market and the slowing of production activity. Meanwhile, the ECB yesterday organized an auction for commercial banks’ lending, which was used quite a bit of financial institutions. This and the success of the bond issue in Spain, have strong support of the single currency. On the New York Stock Exchange yesterday, oil contracts with delivery in August dropped by 3.5 percent to 72.95 dollars a barrel. This is the lowest cost of raw material from 8 June onwards, and earlier this morning quotes remain at the same level. This means that travel week black gold has dropped by as much as 7.2 per cent, taking the greatest decrease in the week since May 7.
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The leaders of the U.S. Federal Reserve Ben Bernanke and European Central Bank (ECB) Jean-Claude Trichet stressed in separate statements that developing economies are a key factor for global financial stability. According to Bernanke the global economy increasingly dependent on emerging markets to maintain strong domestic demand and economic and financial stability. The improvement of policies and regulatory frameworks in emerging markets has an effect beyond those economies themselves, he said. In a separate statement prepared for a press conference during a meeting of finance ministers and heads of central banks of the G-20 in South Korea at the end of this week, Trichet stated that developing economies have been a source of strength in the world financial crisis. Characteristic aspect of this crisis was that going from industrialized economies. Developing countries were also severely affected, but as a group remained the lifeblood of the global economy, Trichet said in a pre-prepared statement for the press conference. Speaking of Bernanke is also pre-recorded for the event. Bernanke gives an example South Korea, saying the government and the central bank of the country, launched after the Asian financial crisis of the late 90’s of last century, helped South Korea to resist the current crisis.
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The billionaire investor George Soros said he believes in the ability of Greece to remain in the euro area. He also said that the eyes of market participants are currently targeting the debt problems of several countries, including Greece stands in the foreground. “I believe that Greece will do whatever is necessary to meet the requirements to remain in the euro area,” said Soros told reporters in Jakarta. Among the main reasons the country is fighting for his membership in the euro area is that when the ECB adopts its bonds as collateral for a loan of commercial banks. In the event that the country lost the credit rating, however, its securities will no longer meet the necessary conditions and will not be accepted as collateral. “Support in Greece aims to achieve, I hope the EU, the ECB and the euro area to find a way to finance the country which is not too expensive to support,” said Soros, quoted by Bloomberg.
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