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ECB: Fiscal Measures Due to War to Add 0.4 Point to GDP, 0.1 Point to Inflation over Medium Term

By David Barwick – FRANKFURT (Econostream) – The positive impact on growth and negative impact on inflation of fiscal measures taken by euro area countries in response to Russia’s war of aggression will be felt primarily in the current year, the European Central Bank said on Monday.

Bank of Greece Deputy Governor Papaconstantinou: ECB Would Adjust Normalisation Pace to Economic Slowdown

By David Barwick – FRANKFURT (Econostream) – Bank of Greece Deputy Governor Christina Papaconstantinou on Monday said that the European Central Bank would need to modify the pace of monetary normalisation if the economy were to slow down significantly.

ECB: Current Oil Price Rise Implies 0.8% Loss in Euro Area Medium-Term Potential Output

By David Barwick – FRANKFURT (Econostream) – The 40% rise in the price of oil incorporated in the latest European Central Bank staff projections implies a medium-term loss in Eurozone potential output of approximately 0.8%, the ECB said on Monday.

ECB: Pandemic Savings Have Only Limited Ability to Cushion Energy Price Rises for Consumers

By David Barwick – FRANKFURT (Econostream) – The nature of savings accumulated during the pandemic is such that this money won’t cushion the impact on consumers of recently more expensive energy, the European Central Bank said on Monday.

ECB Insight: Single-Minded Focus on Inflation Likely to Come Under Pressure as Growth Slows

By David Barwick – FRANKFURT (Econostream) – As the Eurozone’s economic weakening becomes more apparent, the question of whether or indeed when the ship of monetary policy normalisation might start running out of steam becomes more pressing.

They Said It - Recent Monetary Policy Comments Made by ECB Governing Council Members

By David Barwick – FRANKFURT (Econostream) – The following is a compendium of comments made by European Central Bank Governing Council members very directly related to monetary policy’s next steps. We only include forward-looking comments made recently enough to be current. Updates are made on a periodic basis.

ECB’s de Guindos: Exceptional Policies Should Be Gradually Normalised; Inflation Will Guide Us

By David Barwick – FRANKFURT (Econostream) – European Central Bank Vice President Luis de Guindos on Friday said that pandemic policies should be normalised and that the ECB would strive for price stability on the basis of inflation, notwithstanding slower growth.

They Said It - Recent Monetary Policy Comments Made by ECB Governing Council Members

By David Barwick – FRANKFURT (Econostream) – The following is a compendium of comments made by European Central Bank Governing Council members very directly related to monetary policy’s next steps. We only include forward-looking comments made recently enough to be current. Updates are made on a periodic basis.

ECB’s Visco: Worsening Growth Prospects Won’t Force ECB to Abandon Post-September Tightening

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Ignazio Visco on Thursday did not want to commit to a particular magnitude for the expected ECB interest rate hike in September, but suggested that tightening would continue beyond that month despite the brewing economic storm.

ECB Hawk-Dove Ranking: Average of Governing Council Enters Hawkish Territory

ECB’s Stournaras: May Start Reducing Interest Rates in 2023 if We Have a Recession

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Yannis Stournaras on Wednesday suggested that rate cuts might not be in the too-distant future, were Europe to enter recession.

ECB’s Wunsch: Deposit Rate of 1.5% a ‘No-Brainer’ as Long as No Severe Recession

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Pierre Wunsch on Tuesday said that the ECB should get the deposit rate to 1.5% if no severe recession occurred.

ECB’s Nagel: Must Quickly End the Still Very Expansionary Monetary Policy Stance

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Joachim Nagel on Tuesday urged a quick end to what he called a ‘still very expansionary’ ECB monetary policy stance.

ECB’s de Cos: Inflation Risks Remain on the Upside and Have Intensified

By David Barwick – FRANKFURT (Econostream) – Inflation risks are still predominantly to the upside and have worsened, European Central Bank Governing Council member Pablo Hernández de Cos said Tuesday.

ECB’s Makhlouf: Core Eurozone Inflation Shows Spillover of Energy, Commodity Price Rises

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Gabriel Makhlouf on Monday said that core measures of inflation demonstrated that higher price rises for raw materials had affected a much wider range of goods and services.

ECB’s Visco: Not Time Now Really to Ask for Higher Interest Rates Than We Had Foreseen

By David Barwick – FRANKFURT (Econostream) – The European Central Bank will determine the appropriate magnitude of any future rate hikes when the time comes, ECB Governing Council member Ignazio Visco said on Monday.

ECB’s Holzmann: To Decide in the Fall ‘Whether to Do Another 0.50%, or Less, or Even More’

By David Barwick – FRANKFURT (Econostream) – The European Central Bank will decide in the fall whether its next rate hike will be smaller than, equal to or even larger than last week’s 50bp increase, Governing Council member Robert Holzmann said on Sunday.

ECB’s Lagarde: ‘We Will Keep Raising Rates for as Long as Necessary’

By David Barwick – FRANKFURT (Econostream) – European Central Bank President Christine Lagarde on Saturday said the ECB would continue hiking interest rates until the medium-term inflation outlook was consistent with price stability.

ECB’s Villeroy: TPI Confirms Governing Council’s Unity and Unlimited Commitment to the Euro

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau on Friday conceded that the ECB had given every indication of not being able to come up with a substantive anti-fragmentation programme by yesterday, but asserted that the achievement reflected policymakers’ unity and commitment.

ECB’s de Cos: Nothing Has Changed About Our Intention to Take Rates to Neutral Level

By David Barwick – FRANKFURT (Econostream) – Yesterday’s larger-than-expected rate hike by the European Central Bank does not alter the ECB’s determination to take official borrowing costs to neutral, Governing Council member Pablo Hernández de Cos said Friday.