TODAY’S TOP ARTICLES – 06 JUN 2014

Euro area: The ECB Lowers the Benchmark Rate and Imposes Negative Deposit Rates
The European Central Bank (ECB) has cut its benchmark interest rate to a record low of 0.15% and has introduced a set of further measures that aim to foster economic growth in the Euro area. Among others, it introduced a negative deposit rate of -0.1% to encourage lending; the ECB is the first major Central Bank that imposes negative deposit rates. (Source: BBC)

China: Leaders Should Hold Bank Deposit Tool in Reserve
There have been rumors that China would lower the reserve-requirement ratio in order to prop up growth. In this article, however, Caixin argues that this measure will not address the real problems that the financial sector is facing and it will probably have substantial adverse effects. (Source: Caixin)

Japan: Abenomics’ Legacy: Japan’s Greatest “Misery” In 33 Years
This article by Zero Hedge argues that Japan’s Abenomics has failed to pull out the country from economic stagnation, at least for the vast majority of the population. Inflation started to rise, while real wages declines, thus pushing the misery index to the highest level since 1981.

Turkey: Moody’s Revises Ratings on 11 Turkish Banks
Moody’s has made rating revisions for 11 Turkish banks, citing an increasingly challenging operating environment, which “is expected to persist for the next 12-18 months.” (Source: The Hurriyet Daily News)

United Kingdom: Bank of England Holds UK Interest Rates at 0.5%
UK interest rates have been held at the record low of 0.5% for another month by the Bank of England. The size of the Bank’s bond-buying economic stimulus programme was also kept unchanged at GBP 375 billion. (Source: BBC News)

For the latest economic indicators from around the world, please visit us at Focus-Economics.com.

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