Central Bank

ECB Meeting Account Shows 2023 HICP Forecast Widely Seen as Subject to Upward Risks

By David Barwick – FRANKFURT (Econostream) – The account of the European Central Bank’s policy meeting of 9-10 June, released by the ECB on Friday, indicated a growing lack of confidence among Governing Council members that inflation would undershoot the price stability objective to the extent projected.

ECB’s de Cos: Temporary Overshooting an ‘Important Point’ of Strategy Review Outcome

By David Barwick – FRANKFURT (Econostream) – The explicit recognition of the possibility of temporarily overshooting the inflation objective is an important result of the European Central Bank’s strategy review, ECB Governing Council member Pablo Hernández de Cos said Friday.

ECB’s Weidmann on Strategy Review: Not Aiming for Above or Below 2%

By David Barwick – FRANKFURT (Econostream) – The outcome of the European Central Bank’s strategy review establishes a clear target monetary policy will aim neither to overshoot nor undershoot, ECB Governing Council member and German Bundesbank President Jens Weidmann said Friday.

ECB’s Müller: Monetary Accommodation Has Been Beneficial, But Not Without Risks

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Madis Müller warned Friday that ECB policies had been beneficial, but also brought risks of asset overvaluation and dangerously high debt levels.

ECB’s Makhlouf: Delta ‘More Likely to Delay Recovery Than Fundamentally Change It’

By David Barwick – FRANKFURT (Econostream) – The delta variant of the coronavirus will probably delay the economic recovery without having a large effect on it, European Central Bank Governing Council member Gabriel Makhlouf said on Friday.

ECB Brief: Lagarde Offers Some Limited Additional Insight Into Strategy Review Outcome

ECB Strategy Review Yields Symmetric Medium-Term Stability Objective of 2%, Subject to Deviations

By David Barwick – FRANKFURT (Econostream) – The European Central Bank on Thursday reconfirmed its commitment to a medium-term price-stability objective but declared this to be a point target of 2% to be understood as a symmetric commitment and expressed a willingness to overshoot.

ECB Insight: Schnabel a Solitary Contrasting Voice on the Executive Board

By David Barwick – FRANKFURT (Econostream) – The uniformity with which the European Central Bank Executive Board leans dovish makes member Isabel Schnabel a solitary contrasting voice. Indeed, a closer look at her recent comments side-by-side with those of a dovish colleague reveals considerable differences not far beneath a common surface.

German ZEW Expectations Retreat Again in July

By David Barwick – FRANKFURT (Econostream) – The forward-looking ZEW German economic sentiment indicator retreated in July for the second month in a row, declining 16.5 points to 63.3, economic research institute ZEW said on Tuesday.

European Insurance and Occupational Pension Authority: Environment Challenging for Insurers

By David Barwick – FRANKFURT (Econostream) – Europe’s insurance companies are beset by low interest rates and various risks to the financial system, European Insurance and Occupational Pension Authority (EIOPA) said Tuesday.

ECB’s Visco: Under Favourable Conditions, Italy’s Expansion Should Persist Over Medium Term

By David Barwick – FRANKFURT (Econostream) – Provided the monetary and financial environment remains positive, Italy’s economic expansion should persist over the medium term, European Central Bank Governing Council member Ignazio Visco said Tuesday.

ECB’s de Cos: Financing Conditions Should Stay Favourable Until Inflation Outlook Improves

By David Barwick – FRANKFURT (Econostream) – Financing conditions should remain as favourable as they are now as long as the medium-term inflation outlook doesn’t improve, European Central Bank Governing Council member Pablo Hernández de Cos said Tuesday.

ECB’s de Guindos: If Economy Normalises, Policy Will Also Normalise

By David Barwick – FRANKFURT (Econostream) – Policy will return to normal along with the economy, European Central Bank Vice President Luis de Guindos said Monday.

ECB’s Schnabel: Long-Term Inflation Recovery Needs Accommodation, Tolerance for Overshooting

By David Barwick – FRANKFURT (Econostream) – Long-term inflation expectations appear to be headed in the direction of the ECB’s price stability objective, but a sustained realignment requires continued monetary accommodation and tolerance for temporary above-target outcomes, European Central Bank Executive Board member Isabel Schnabel said on Saturday.

ECB Insight: Schnabel Acknowledges Possibility of Inflation Recovery

By David Barwick – FRANKFURT (Econostream) – European Central Bank Executive Board member Isabel Schnabel’s speech over the weekend represents a tentative but important acknowledgment of the potential for euro area inflation to stage the kind of sustainable recovery monetary policymakers had until now seemed to discount.

Central Bank of Ireland Deputy Governor: Monetary Policy Will Normalise in Time

By David Barwick – FRANKFURT (Econostream) – Monetary policy will eventually normalise, a process that could lead to a rise in sovereign bond yields if public debt is elevated, Central Bank of Ireland Deputy Governor Sharon Donnery said Friday.

ECB Insight: Muted Lagarde Interview Could Presage More ‘Steady Hand’

By David Barwick – FRANKFURT (Econostream) – Perhaps the central message of the interview published Friday with European Central Bank President Christine Lagarde is that in fact there is no new message in need of conveying at the moment, at least not to financial markets, and thus no reason for the ECB to alter its ‘steady hand’ approach.

ECB Brief: Weidmann Rehashes Opposition to Asset Purchases, Raises No Objection to Symmetry

ECB’s Lagarde: Rising Credit Risk to Become Fully Visible Only Over Time

By David Barwick – FRANKFURT (Econostream) – European Central Bank President Christine Lagarde on Thursday said that credit risk associated with the pandemic’s impact will be apparent only with time.

ECB’s Stournaras: ECB Monetary Policy Unlikely to Lead to Very High Inflation

By David Barwick – FRANKFURT (Econostream) – The probability that the liquidity created by the European Central Bank’s monetary policy leads to very high inflation is low, ECB Governing Council member Yannis Stournaras said Thursday.