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ECB's Coeure: The stronger the euro, the more need for stimulus - BBG

FRANKFURT (Reuters) - European Central Bank Executive Board member Benoit Coeure said on Friday that the stronger the euro exchange rate, the more need there would be for a more accommodative monetary policy stance. Talking to Bloomberg television, Coeure stressed that the foreign exchange rate was not a policy target for the ECB, though the central bank did take its impact on inflation into account.

Draghi takes slow road to QE with packaged-debt push

By Eva Taylor and Paul Carrel FRANKFURT (Reuters) - The European Central Bank is mulling creative measures to stave off deflation but one of them, revamping a market that was at the heart of the financial crisis, will take time with no guarantee it will take off. It is scrambling to boost Europe's market for securitized assets - those backed by loans.

ECB ready to act but central banks can't do everything: Constancio

WASHINGTON (Reuters) - The European Central Bank is ready to use unconventional tools to cope with any overly prolonged period of low inflation, the ECB's vice president said, although he added that "people seem to expect too much from central banks". While reiterating the ECB's readiness to take further action if needed, Vitor Constancio also pressed euro zone governments on Thursday to take measures to promote investment and spur demand as the bloc faces a slow recovery.

Minnesota lawmakers OK raising minimum wage to $9.50 an hour

By David Bailey MINNEAPOLIS (Reuters) - Minnesota lawmakers on Thursday approved a measure raising the state's minimum wage from one of the lowest in the nation to one of the highest. The measure to bump the hourly wage to $9.50, one of dozens of wage proposals debated by lawmakers around the country this year, passed the Democrat-controlled House by a vote of 71-60. The Democrat-run Senate approved the measure on Wednesday. It now goes to Democratic Governor Mark Dayton, who supports the bill.

India banker urges global monetary policy scrutiny

India's central bank chief on Thursday proposed a new independent assessor to warn of international spillovers from unconventional monetary policy after Western crisis measures wreaked havoc in emerging economies. Reserve Bank of India governor Raghuram Rajan, who presciently warned of risks ahead of the 2008 global meltdown, also endorsed calls for a stronger safety net from the International Monetary Fund to provide liquidity access to vulnerable countries.

No ECB decisions yet on details of possible QE, private asset buying likely

WASHINGTON (Reuters) - The European Central Bank has not taken any decisions yet on the details of possible quantitative easing to prevent deflation, but it would likely include buying private assets, ECB Vice President Vitor Constancio said on Thursday. "Our experts have been looking into it, and building scenarios, but no decisions have been taken," Constancio told reporters.

Around one-in-three chance ECB to buy bonds outright: Reuters poll

By Jonathan Cable LONDON (Reuters) - There is slightly less than a one-in-three chance the European Central Bank will start buying bonds outright as it struggles to lift dangerously low inflation and support a lackluster economic recovery, a Reuters poll found. The poll of 59 economists, taken this week, gave a median 30 percent chance the ECB would start a quantitative easing program, about half a decade after the U.S. Federal Reserve and the Bank of England launched the same kind of stimulus.

ECB's Praet says readiness to launch QE is what is important now

WASHINGTON (Reuters) - The European Central Bank will choose the appropriate form of quantitative easing, if it were to launch it, depending on the challenge it faces, but for now it is important that the bank unanimously backed the possibility of such a policy measure. ECB Executive Board member Peter Praet said that despite lower than expected inflation in the euro zone for several months in a row, consumer price developments were still within the banks base-line scenario.

S. Korea stands pat on interest rates

South Korea's central bank on Thursday kept interest rates at 2.5 percent for the 11th consecutive month, citing signs of recovery at home and abroad and uncertainty about the US Federal Reserve's stimulus. "Global economy is expected to continue moderate recovery, but there still are lingering risks as the US Fed's possible change of monetary policy can... pummel growth of emerging economies," the bank said in a statement. The Fed's huge asset-purchase scheme has provided much-needed foreign investment in countries such as South Korea.

Dollar under pressure in Asia after Fed minutes

The dollar edged down against the yen on Asia on Thursday after minutes from the US Federal Reserve showed its policymakers are broadly against hiking interest rates too soon. The greenback bought 101.81 yen in Tokyo midday trade, compared with 101.97 yen in New York Wednesday. The euro fetched $1.3849 and 141.02 yen, against $1.3852 and 141.26 yen in US trade. Minutes released Wednesday of the Fed's latest policy meeting showed the policy board was in favour of continuing a steady reduction in its stimulus programme.
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