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ECB’s de Cos: PEPP Duration Depends on Financing Conditions, Inflation

ECB’s de Cos: PEPP Duration Depends on Financing Conditions, Inflation

In an interview with Spanish daily El Mundo, de Cos, who heads the Banco de España, said that ‘[i]n a context where the macroeconomic picture is similar to that of three months ago, with a medium-term inflation forecast that is far from our target and below that anticipated before the crisis, we believe that a tightening of financing conditions is not appropriate because it could hinder the economic recovery.’

15 March 2021 Central Bank News
ECB’s Kazaks: Can Tolerate Rise in Yields if it Happens Gradually

ECB’s Kazaks: Can Tolerate Rise in Yields if it Happens Gradually

In an interview with Bloomberg, Kazaks, who heads Latvijas Banka, was quoted as saying that ‘[i]f the economy performs better, it could be possible to provide less support.’ A ‘rise in yields will need to be accepted. But it should be gradual to avoid premature tightening.’

14 March 2021 Central Bank News
ECB’s Müller: Don’t Overestimate Impact of Higher Yields on Recovery

ECB’s Müller: Don’t Overestimate Impact of Higher Yields on Recovery

In an op-ed piece in Estonian daily newspaper Postimees, Müller, who heads the Estonian central bank, called the rise in government bond yields ‘signficant’ from a central bank’s point of view, but pointed out that sovereigns were still able to benefit from very low interest rates.

12 March 2021 Central Bank News
ECB’s Villeroy: Very Pleased About Our Reaction Yesterday

ECB’s Villeroy: Very Pleased About Our Reaction Yesterday

In an interview on the economic and political webcast Ecorama, Villeroy, who heads the Bank of France, said that the flexibility of the pandemic emergency purchase programme (PEPP) made unnecessary both greater specificity about the ECB’s more rapid purchase rate and an increase in the size of the PEPP envelope.

12 March 2021 Central Bank News
German Inflation Confirmed at 1.3% Y/Y in February

German Inflation Confirmed at 1.3% Y/Y in February

By David Barwick – FRANKFURT (Econostream) – Consumer prices in Germany were confirmed to have risen in February by 1.3% on the year to almost the level of before the pandemic, according to the German Federal Statistical Office on Friday.

12 March 2021 Central Bank News
ECB’s Vasle: Decided to Accelerate Asset Buys With PEPP Envelope Unchanged

ECB’s Vasle: Decided to Accelerate Asset Buys With PEPP Envelope Unchanged

By David Barwick – FRANKFURT (Econostream) – The European Central Bank’s decision yesterday to accelerate the rate of asset purchases to counter risen yields was made with the envelope of the pandemic asset purchase programme (PEPP) unchanged, Governing Council member Boštjan Vasle said Friday.

12 March 2021 Central Bank News
German Labour Costs up 2.1% Q/Q in 4Q as Hours Worked Decline

German Labour Costs up 2.1% Q/Q in 4Q as Hours Worked Decline

By David Barwick – FRANKFURT (Econostream) – German hourly labour costs climbed a seasonally and calendar-adjusted 2.1% on the quarter in the last quarter of 2020, the German Federal Statistical Office said Thursday.

11 March 2021 Central Bank News
ECB’s Weidmann Reappointed Head of BIS Board of Directors

ECB’s Weidmann Reappointed Head of BIS Board of Directors

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member and German Bundesbank President Jens Weidmann was re-elected chair of the Board of Directors of the Bank for International Settlements, the BIS said on Wednesday.

10 March 2021 Central Bank News
ECB Meeting to Highlight Division Among Governing Council Members

ECB Meeting to Highlight Division Among Governing Council Members

By David Barwick – FRANKFURT (Econostream) – The European Central Bank faces a monetary policy meeting of the Governing Council on Thursday that may bring the differing views among its members into starker relief than any other such gathering recently.

9 March 2021 Central Bank News
Eurozone 4Q GDP Declines by 0.7% Q/Q and 4.9% Y/Y; 2020 at -6.6%

Eurozone 4Q GDP Declines by 0.7% Q/Q and 4.9% Y/Y; 2020 at -6.6%

By David Barwick – FRANKFURT (Econostream) – Seasonally adjusted Eurozone GDP declined by 0.7% on the quarter and 4.9% on the year in 4Q of 2020, leading to a 6.6% drop for the year as a whole, EU stats office Eurostat reported on Tuesday.

9 March 2021 Central Bank News
BOE’s Bailey: Preparation for NIRP Implies Nothing About Our Intentions

BOE’s Bailey: Preparation for NIRP Implies Nothing About Our Intentions

By David Barwick – FRANKFURT (Econostream) – The fact that the UK’s banks have been asked to prepare for the possibility of negative interest rates does not imply anything about what course the Bank of England’s monetary policy will take, BOE Governor Andrew Bailey said Monday.

8 March 2021 Central Bank News