ECB Brief: Holzmann Says July Governing Council Meeting Will Be ‘Most Interesting and Difficult’
- Holzmann: One purchase programme still there, scheduled to end in July
- Holzmann: Greatest concern is inflation expectations
Central Bank News
ECB Insight: With Policy Tightening Looming Ever Larger, Super-Dove Visco Mounts a Last Stand
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Ignazio Visco on Thursday appeared torn between alternately conceding the inevitability of tighter monetary policy and staving it off.
28 April 2022
Exclusive: More Pronounced Euro Weakness a Headache for ECB, Econostream Understands
- ECB insider: Higher depreciation of euro can affect HICP projection at end of horizon
- ECB insider: Agree with Klaas Knot that we should counter continued euro depreciation
- ECB insider: ‘Sudden [exchange rate] shifts need to be taken into account’
ECB: Price Rises More Widespread, Upside Inflation Risks Have Intensified
By David Barwick – FRANKFURT (Econostream) – Price pressures have broadened and it is unclear how long underlying inflation will persist at levels above 2%, the European Central Bank said on Thursday.
28 April 2022
ECB Insight: Kazāks Gets Behind a July Lift-Off as a ‘Better Option’ than September
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Mārtiņš Kazāks on Tuesday positioned himself in favour of a July rate hike rather than for the next-best option of a September lift-off.
26 April 2022
ECB Insight: ECB Ready to Handle Potentially Large TLTRO Repayment End-June
By David Barwick – FRANKFURT (Econostream) – The European Central Bank is ready to deal with the possibility of an outsized repayment two months from now of funding provided banks under the ECB’s targeted longer-term refinancing operations (TLTROs), Econostream understands.
25 April 2022
They Said it - Recent Monetary Policy Comments Made by ECB Governing Council Members
By David Barwick – FRANKFURT (Econostream) – The following is a reasonably complete compendium of the most recent comments made by European Central Bank Governing Council members with respect to monetary policy. Updates are made on a periodic basis.
25 April 2022
ECB’s Lagarde: Must Act in a Gradual Way So That We Don’t Induce Recession
By David Barwick – FRANKFURT (Econostream) – European Central Bank President Christine Lagarde on Sunday indicated that once the ECB’s net asset purchases were over, the ECB would decide on the details of interest rate increases, acting gradually so as to preserve economic growth.
25 April 2022
Exclusive: 50-bp Rate Hike Not ECB Baseline for Now, But Council Will Have to Discuss
Exclusive: 50-bp Rate Hike Not ECB Baseline for Now, But Council Will Have to Discuss
- ECB insider: Some hawks will push for 50-bp hike to get away from negative rates
- ECB insider: Expect spread between DFR and MRO to be narrowed during normalisation
ECB Survey of Professional Forecasters Shows Near-Term Inflation Higher, but Medium Term Stable
By David Barwick – FRANKFURT (Econostream) – Professional forecasters now expect inflation this year and next to be higher than they anticipated three months ago, but are sticking to their previous prediction regarding medium-term HICP, the European Central Bank said on Friday.
15 April 2022
ECB Insight: Lagarde Treads Carefully, But Renews Stress on Continued Normalisation
By David Barwick – FRANKFURT (Econostream) – European Central Bank President Christine Lagarde on Thursday took care not to show much bias in any direction, but as in March, the message came though nonetheless that Russia’s campaign of aggression against Ukraine was not standing in the way of the ECB's monetary policy normalisation.
14 April 2022
ECB Insight: An End to Russia’s War on Ukraine Might Make Little Difference for Monetary Policy
By David Barwick – FRANKFURT (Econostream) – If Russia’s unjustified war of aggression against Ukraine were to come to an end soon, Europe would breathe a collective sigh of relief at the halting of bloodshed, but European central bankers would not necessarily see a major impact on monetary policy, Econostream understands.
14 April 2022
Exclusive: ECB Anti-Spreads Programme to Face Bumpy Path, Econostream Understands
Exclusive: ECB Anti-Spreads Programme to Face Bumpy Path, Econostream Understands
- ECB insider: Permanent mechanism would call EMU’s institutional set-up into question
- ECB insider: Permanent, unconditional facility would amount to transfer union via backdoor
- ECB insider: Facility limited to targeting temporary crisis situations more likely outcome
ECB Has Much to Debate, But Lagarde May Have Much Less to Communicate
By David Barwick – FRANKFURT (Econostream) – The April monetary policy meeting of the European Central Bank’s Governing Council is set to be the scene of particularly interesting deliberations to which the subsequent communication by ECB President Christine Lagarde may not live up, given the likely absence of any major decisions and a clear preference for leaving options open.
12 April 2022
They Said it - Recent Monetary Policy Comments Made by ECB Governing Council Members
By David Barwick – FRANKFURT (Econostream) – The following is a reasonably complete compendium of the most recent comments made by European Central Bank Governing Council members with respect to monetary policy. Updates are made on a periodic basis.
11 April 2022
ECB Insight: Amid the Clamour of ECB Hawks, a Dovish Trio Exploits the Quiet Period to Be Heard
By David Barwick – FRANKFURT (Econostream) – As if to counter the growing perception that tighter European Central Bank monetary policy has become a juggernaut, three Governing Council members on Friday bent the rules of the ECB’s so-called quiet period somewhat in a demonstration of unified reluctance to endorse the dominant trend.
8 April 2022
ECB’s Herodotou: Just Because Inflation Tops 2%, That’s No Reason to Hike Rates
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Constantinos Herodotou on Friday said that inflation in excess of 2% was not per se grounds to hike official borrowing costs.
8 April 2022
ECB’s Makhlouf: ‘Incredibly Uncertain’ Whether and When We Need to Take Action
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Gabriel Makhlouf on Friday said that it was extremely unclear what and when the ECB needed to take monetary policy steps.
8 April 2022
ECB’s Stournaras: We’ll Do Whatever it Takes Not to Let Inflation Become Structural
By David Barwick – FRANKFURT (Econostream) – The European Central Bank will do whatever is needed to prevent inflation from becoming entrenched, ECB Governing Council member Yannis Stournaras said Friday.
8 April 2022
Exclusive: ECB’s Net Asset Purchases Most Likely to End in July, Official Says
Exclusive: ECB’s Net Asset Purchases Most Likely to End in July, Official Says
- Official: optionality of September rate hike still open; decision in June at the latest
- Official: inflation showing up in wages is still ‘the missing link at the moment’