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ECB Insight: Schnabel Forges Ahead on Energy Transition’s Inflation Significance; Lane Plays it Safe

By David Barwick – FRANKFURT (Econostream) – For anyone interested in how the energy transition might ultimately play out in terms of inflation, European Central Bank Executive Board member Isabel Schnabel provided the clearest theoretical answer to date.

ECB’s Schnabel: Can’t Look Through Energy Price Rises if They Threaten Price Stability

By David Barwick – FRANKFURT (Econostream) – The European Central Bank may need to ditch the traditional practice of ignoring passing deviations of inflation from its target when these are driven by energy prices, ECB Executive Board member Isabel Schnabel said Saturday.

ECB’s Lane: Evidence All Points to 2023 and 2024 HICP Likelier Below Target

By David Barwick – FRANKFURT (Econostream) – All available evidence supports the European Central Bank’s view that inflation next year and the year after is more likely to undershoot the ECB’s price stability target, Executive Board member Philip Lane said Friday.

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. The frequency of updates will correspond approximately to the frequency with which relevant comments are made.

ECB’s Villeroy: Inflation to Settle Close to Target, Monetary Policy to Normalise Accordingly

By David Barwick – FRANKFURT (Econostream) – Inflation will ultimately settle close to the target of the European Central Bank, entailing a gradual normalisation of monetary policy, Governing Council member François Villeroy de Galhau said Tuesday.

ECB’s Knot: Could Hike Rates in Early 2023

By David Barwick – FRANKFURT (Econostream) – The European Central Bank could hike rates in early 2023, ECB Governing Council member Klaas Knot said Thursday.

ECB’s Visco: ‘I Think the Risks Are Balanced and Not Asymmetrical to the Upside’

By David Barwick – FRANKFURT (Econostream) – Risks to inflation are balanced overall rather than being to the upside, European Central Bank Governing Council member Ignazio Visco said on Thursday.

ECB’s Knot: ‘Safe to Say We Are Very, Very Close to “Mission Accomplished”’

By David Barwick – FRANKFURT (Econostream) – The European Central Bank is within reach of price stability and with risks to inflation obviously tilted upwards, policy tightening is more likely than further accommodation, Governing Council member Klaas Knot said Thursday.

ECB’s Holzmann: Initiated ‘Gradual Move Away from Negative Interest Rates’, Must Continue in 2022

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Robert Holzmann on Thursday said that the ECB had in effect started the slow process of exiting from negative interest rates and that it would be crucial to continue this in 2022.

ECB’s Centeno: Portugal Has 2-3 Years to Ensure Debt Sustainability

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Mario Centeno on Wednesday said that Portugal had two to three years to ensure its debt sustainability.

ECB’s Centeno: Monetary Policy Will Have Time to React

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Mario Centeno on Tuesday said in the context of elevated inflation that ECB monetary policy would have time to react.

Bank of Greece: Energy Prices Could Dis-Anchor Expectations, Prompt Tighter Monetary Policy

By David Barwick – FRANKFURT (Econostream) – High inflation could persist and cause inflation expectations to come unanchored, leading the European Central Bank to tighten monetary policy sooner than currently anticipated, the Bank of Greece said Wednesday.

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. The frequency of updates will correspond approximately to the frequency with which relevant comments are made.

ECB’s Holzmann: Under Extreme Circumstances, Could Hike Rates in 2022

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Robert Holzmann on Wednesday said that the ECB could hike interest rates already in 2022 under extreme circumstances.

ECB’s Schnabel: ‘On the Right Path to Achieving our Target in a More Sustainable Manner’

By David Barwick – FRANKFURT (Econostream) – The European Central Bank is headed in the right direction in terms of sustainably achieving price stability, Executive Board member Isabel Schnabel said Wednesday.

ECB’s de Cos: Need Unexpectedly Strong Wage Growth for Upside Mid-Term Inflation Surprise

By David Barwick – FRANKFURT (Econostream) – Stronger-than-expected medium-term inflation would probably require a more robust evolution of wages than the evidence so far presages, European Central Bank Governing Council member Pablo Hernández de Cos said Wednesday.

ECB’s Rehn: If Inflation Risks Getting Too High, Monetary Policy Will Take Action

By David Barwick – FRANKFURT (Econostream) – Should inflation threaten to mount too much, the European Central Bank will take action to counter this, ECB Governing Council member Olli Rehn said on Wednesday.

ECB’s Müller: Energy Price Growth Likely to Slow Next Year

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Madis Müller on Tuesday said that energy prices could be expected to decelerate next year.

ECB Hawk-Dove Ranking: Farewell to Weidmann, Welcome to Nagel

ECB’s de Cos Stresses Possibility to Reactivate PEPP; ‘Health Crisis Clearly Not over’

By David Barwick – FRANKFURT (Econostream) – The crisis phase of the pandemic is by no means at an end and the European Central Bank retains the right to reactivate net purchases under the pandemic emergency purchase programme (PEPP), ECB Governing Council member Pablo Hernández de Cos said Monday.