Frankfurt letter, week beginning April 25

-The European Central Bank

The European Central Bank (ECB) left all its interest rates unchanged and did not announce any monetary policy changes in line with expectations at last Thursday's meeting.

The ECB left its benchmark interest rate unchanged at a record-low 0.0 percent, deposit facility rate at -0.4 percent and its marginal lending rate at 0.25 percent.

Speaking after the rate decision, ECB President Mario Draghi pointed out that the ECB was prepared to do more if needed. The ECB’s economic assessment was largely unchanged from last month. The recovery proceeds at a moderate, although steady pace and risks remain tilted towards the downside.

Draghi was asked about "helicopter money", where the bank effectively injects cash into the economy to trigger consumer spending, but he confirmed that this subject was not discussed by the Governing Council.

- News form Germany

German ZEW economic sentiment index rose more than expected last month, data showed on Tuesday.

In a report, the ZEW Centre for Economic Research said the index of German business sentiment rose to 11.2, from 4.3 in the preceding month.

The Volkswagen Group, one of the Europe's largest automakers, announced a €4.1 billion operating loss for 2015 last Friday.

It will take decades for Eastern German wages to reach the average level seen in Western Germany, according to new research published Thursday by Munich-based Institute for Economic Research, the Ifo Institute.

-The week ahead

This week, global markets will monitor the Eurozone's unemployment and flash estimate inflation data as well as preliminary flash estimate European Union and Euro area GDP figures.

27 Apr,2016