Hitting the Limit of ‘Whatever It Takes’

However, reporting banks said they had tightened credit standards on loans to households for house purchase (a net percentage of 5% of banks reported tightened standards, from -9% in the previous quarter), broadly in line with the expected tightening of standards in the previous survey.

The survey said that net demand for loans to firms “continued to increase” in the third quarter and “banks expect a further considerable increase in demand from enterprises in the fourth quarter of 2015”. That reduced the need for the European Central Bank to ramp up its 1 trillion euro ($1.14 trillion) asset purchase program, pushing up German bond yields and putting a floor under the recently shaky euro… Morgan Stanley’s “Months to First Rate Hike Index”, which provides a numerical representation of when the central bank would raise rates from present day, now registers July 2018 as when the ECB will move away from its NIRP/ZIRP policies.

Competitive pressures, say respondents, has in large part encouraged banks to ease credit standards on loans to enterprises.

A net four per cent of respondents in the ECB’s Bank Lending Survey said they were easing credit standards on loans to enterprises, more than they forecast three months earlier, and expected to continue to do so in the last quarter of the year.

As the authority responsible for banks and financial stability, the ECB has been issuing legal opinions on such national laws, highlighting critical points such as the sharing of liabilities between central banks and governments and the provision of bridge financing.

MSCI’s broadest index of Asia-Pacific shares outside Japan.MIAPJ0000PUS drifted off 0.07 percent.

By 1650 GMT, the euro was steady against the pound at 73.45 pence. On the upside, 0.74 is seen as the next resistance level for the euro.

Canada’s loonie dipped 0.2 percent to C$1.3038 to the dollar after slumping 0.9 percent overnight on the prospect of voters opting for a prime minister who plans to run deficits to increase infrastructure spending.

Oil prices softened on speculation USA inventory data would only underline the extent of oversupply in the world.

In other macro-economic news, public sector net borrowing excluding public sector banks decreased by GBP 7.5 billion ($11.6 billion) to GBP 46.3 billion in the United Kingdom between April 2015 to September 2015 compared with the same period in 2014, according to the Office of National Statistics.

Subsequently, at 11:15 am ET, Bank of Canada Governor Stephen Poloz holds a press conference after the interest rate announcement.

The Fed, Bank of England, and Bank of Japan have all carried out such purchases, with mixed results.

Draghi is getting no help on the exchange rate from his counterparts across the Atlantic at the U.S. Federal Reserve.