ECB policy makers are meeting six days

ECB Wholesale MAC 168 Large Angled Contour Brush Womens policy makers are meeting six days after European leaders handed respite to their stressed bond markets by addressing weaknesses in their bailout programs and trying to break a negative loop between troubled sovereigns and banks. The political progress may encourage the ECB to build on the confidence boost by offering further support to the faltering euro-area economy. Unemployment rose to a record 11.1 percent in May and the services and manufacturing industries contracted for a fifth month in June. The 17-nation economy will shrink 0.3 percent this year, according to the Wholesale MAC 318 Retractable Lip Brush Offer Womens European Commission. “The economic case for easing is quite overwhelming,” said Nick Kounis, head of macro research at ABN Amro in Amsterdam. “The euro zone is in recession and contraction looks like extending into the third quarter. Most indicators are clearly consistent with monetary easing and probably further substantial monetary easing.” Deposit Rate Rate cuts would reduce borrowing costs for euro-area banks, which have tapped the ECB for more than 1 trillion euros ($1.26 trillion) in three-year loans. Taking the deposit rate to zero from 0.25 percent may also encourage banks to lend rather than parking excess cash with the ECB overnight. Around Buy High Quality MAC Sheertone Blush Fard A Joues 800 billion euros is currently being deposited with the ECB each day.