By David Barwick – FRANKFURT (Econostream) – Government fiscal measures to offset the blow from high inflation should be targeted, temporary and not distort market signals, lest monetary policy need additional tightening, the European Central Bank said on Monday.
13 February 2023
By Xavier D’Arcy – FRANKFURT (Econostream) – European Central Bank Governing Council member Mário Centeno said on Monday that the ECB’s terminal rate should become a lot clearer at its upcoming monetary policy meeting in March.
13 February 2023
By David Barwick – FRANKFURT (Econostream) – The European Central Bank must continue tightening monetary policy, but should proceed slowly and cautiously, without taking unduly large steps and guided by incoming information, ECB Governing Council member Ignazio Visco said on Saturday.
11 February 2023
By Xavier D’Arcy – FRANKFURT (Econostream) – European Central Bank Governing Council member Isabel Schnabel said on Friday that the ECB would carry on with rate hikes and keep rates high until it saw clear signs of easing core inflation.
10 February 2023
By David Barwick – FRANKFURT (Econostream) – If government spending to mitigate the impact of high energy prices does not give way to more fiscal restraint as energy cheapens, this could ultimately require greater monetary tightening, European Central Bank Governing Council member Pablo Hernández de Cos said Friday.
10 February 2023
By David Barwick – FRANKFURT (Econostream) – The European Central Bank is likely to continue hiking interest rates after increasing them in March, Governing Council member Boris Vujčić said Friday.
10 February 2023
By David Barwick – FRANKFURT (Econostream) – The globalisation of the last decades as had a disinflationary impact on the euro area and, to a small extent, limited regional inflation’s sensitivity to domestic influences, European Central Bank Governing Council member Pablo Hernández de Cos said Thursday.
9 February 2023
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Joachim Nagel on Thursday suggested that monetary policy remained far from relaxing.
9 February 2023
- Kazāks: ‘Getting to 3% in March is a good choice that … will take us into restrictive territory’
- Kazāks: ‘Rates will need to go up at further meetings’ even after March; 'we are on a solid path of rate increases'
- Kazāks: ‘At some point we’ll reduce our speed’, but ‘by no means’ in March
- Kazāks: Hiking more than 50bp in March ‘would be reckless’, not needed in view of previous steps
- Kazāks: Too early to say how big May rate hike should be
- Kazāks: ‘Quite likely that there’s not going to be a recession at all’
- Kazāks: Once at terminal, expect to ‘stay there for an extended period’; rate cut in 2023 would be 'way too premature'
- Kazāks: ‘Terminal rate is by no means 3%, that has to be clear’, but ‘I also don’t think we will go as high as the US’
- Kazāks: Baseline would be ‘more benign inflation projections in March, but there are risks on both sides’
By David Barwick – FRANKFURT (Econostream) – The European Central Bank may continue raising official borrowing costs beyond a very probable 50bp hike next month, ECB Vice President Luis de Guindos said Wednesday.
8 February 2023
By Xavier D’Arcy – FRANKFURT (Econostream) – European Central Bank Governing Council member Klaas Knot dismissed on Wednesday the idea that the ECB would stop tightening after its next meeting and opened the door to a further 50bp hike at the central bank’s meeting in May.
8 February 2023
By Xavier D’Arcy – FRANKFURT (Econostream) – Governing Council member Joachim Nagel pushed back on Tuesday against suggestions that the European Central Bank’s hiking cycle could end after its pre-announced 50bp hike in March, and dismissed the possibility of rate cuts anytime soon.
7 February 2023
By Xavier D’Arcy – FRANKFURT (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau said on Tuesday that recent economic developments in the Eurozone were facilitating monetary policy’s fight against high inflation.
7 February 2023
By Xavier D’Arcy – FRANKFURT (Econostream) – The European Central Bank’s Consumer Expectations Survey results for December 2022, released on Tuesday, show consumers’ long-term inflation expectations rising slightly, whilst their outlook for the immediate term remains high.
7 February 2023
By Xavier D’Arcy – FRANKFURT (Econostream) – European Central Bank Executive Board member Isabel Schnabel questioned on Tuesday whether the impact of monetary policy tightening to date would return euro area inflation to 2%.
7 February 2023
By David Barwick – BUDAPEST (Econostream) – The European Central Bank’s monetary policy remains subject to a much larger risk from doing too little than from doing too much, according to Governing Council member Robert Holzmann on Monday.
6 February 2023
By Xavier D’Arcy – FRANKFURT (Econostream) – European Central Bank Governing Council member Gaston Reinesch said on Friday that a rate hike in May is a possibility, though not yet a certainty.
6 February 2023
By David Barwick – FRANKFURT (Econostream) – The European Central Bank still has a considerable way to go, possibly even until the third quarter, to reach the terminal rate of the current hiking cycle, according to Governing Council member Robert Holzmann late Friday.
5 February 2023
By Xavier D’Arcy – FRANKFURT (Econostream) – European Central Bank Governing Council member Ignazio Visco said on Saturday that central bankers must carefully balance the risks associated with tightening monetary policy but called for the ECB’s monetary policy tightening to proceed ‘with suitable caution’.
4 February 2023
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Pierre Wunsch on Tuesday said that the ECB’s terminal rate needed to be at least 3.5% if core inflation did not retreat.
3 February 2023