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ECB’s Nagel: Monetary Policy Shouldn’t Let Up Too Soon; Still Have a Ways to Go

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Joachim Nagel on Thursday suggested that monetary policy remained far from relaxing.

Exclusive: ECB’s Kazāks: Rates Need to Keep Rising After March, But Too Soon to Say How Fast or How Much

- 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’

ECB’s de Guindos: ‘I Would Not Rule out Further Rate Hikes After March’

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.

ECB’s Knot: ‘Highly Unlikely’ Hikes Will Stop in March, 50BP in May a Possibility

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.

ECB’s Nagel: Hiking Won’t End in March; Don’t Expect Rate Cuts Soon

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.

ECB in Better Position to Tackle Inflation Now, Villeroy Says

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.

ECB: Long-Term Consumer Inflation Expectations Edge Upwards

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.

Rate Hikes Not Yet Clearly Showing Enough Impact on Inflation, ECB’s Schnabel Says

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%.

ECB’s Holzmann: ‘Risk of Overtightening Seems Dwarfed by the Risk of Doing too Little’

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.

ECB Rate Hike in May Not Certain Yet, Reinesch Says

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.

ECB’s Holzmann: Can Probably Reach the Terminal Rate in 3Q At the Latest

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.

Visco Says ECB Should Be Risk-Aware But Can Proceed with Caution on Rate Hikes

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’.

ECB’s Wunsch: Need a Terminal Rate of at Least 3.5% If Core Remains Persistently High

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.

ECB’s Šimkus: ‘March Is an Intention but Not a Commitment’

By David Barwick – FRANKFURT (Econostream) – A rate hike of 50bp next month by the European Central Bank is the current plan, but is not a promise, according to ECB Governing Council member Gediminas Šimkus.

ECB’s Müller: 50BP March Rate Hike Likely, Based on Current Knowledge

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Madis Müller on Friday said that the ECB was likely to repeat yesterday’s 50bp rate hike next month, according to currently available information.

ECB’s Rehn: We Said We’d Hike by 50BP in March, But We’ll Also Consider New Forecasts

By David Barwick – FRANKFURT (Econostream) – The European Central Bank has said it would hike rates by another 50bp next month, but it would also take into account the updated staff macroeconomic forecasts, ECB Governing Council member Olli Rehn said on Friday.

ECB’s Kažimír: March Hike Won’t Be Last, But Depending on Forecasts, Can Start in June to Talk of Success

By David Barwick – FRANKFURT (Econostream) – The European Central Bank will have to continue to hike interest rates beyond March, but might be able to start considering its efforts as having borne fruit if the March and June forecasts cooperate, Governing Council member Peter Kažimír said Friday.

ECB’s Vasle Says Rates to Rise 50BP in March, Stay at Restrictive Levels

By Xavier D’Arcy – FRANKFURT (Econostream) – European Central Bank Governing Council member Boštjan Vasle said on Friday that he expects key interest rates to rise again by 50bp in March and remain in restrictive territory to ensure inflation falls back to the ECB's 2% target.

ECB Insight: Once Again, the Governing Council Has an Intention

By David Barwick – FRANKFURT (Econostream) – Not for the first time at the European Central Bank, monetary policy has come down to a matter of how much an intention is worth, but with the significant difference that on this occasion, President Christine Lagarde made an earnest effort to address this question, even if the attempt raised yet more questions.

ECB Hawk-Dove Ranking: Lagarde, Lane and other Governing Council Members Reranked