- 2023 HICP forecast likely below 2%, but realised outcome could easily be at 2%
- Must be patient, but can’t exclude that inflationary forces are quite strong and at some point require reaction
- Should recognise that our models risk underpredicting inflationary pressures
- ECB faced with ‘now-or-never’ moment; ‘this is a huge opportunity to re-anchor to 2%’
By David Barwick – FRANKFURT (Econostream) – European Central Bank Vice President Luis de Guindos on Monday appeared to be claiming that shortages affecting economic activity were in effect hampering the euro area’s exit from the crisis.
16 November 2021 Central Bank News
By David Barwick – FRANKFURT (Econostream) – A growing market perception that the European Central Bank is likely to continue offering targeted longer-term refinancing operations (TLTROs) on somewhat less advantageous terms in a post-pandemic world stands a decent chance of becoming reality, Econostream believes.
15 November 2021 Central Bank News
By David Barwick – FRANKFURT (Econostream) – European Central Bank President Christine Lagarde’s rejection on Monday of the idea that she had not countered market rate expectations with much strength neatly underscored the true motive for what was indeed the weakness of that pushback.
15 November 2021 Central Bank News
By David Barwick – FRANKFURT (Econostream) – The duration of the pandemic’s negative impact on potential output remains uncertain and long-term scarring is still possible, the European Central Bank said on Wednesday.
10 November 2021 Central Bank News
By David Barwick – FRANKFURT (Econostream) – The European Central Bank’s pandemic emergency purchase programme (PEPP) is likely to end next March, while what happens to asset purchases under the asset purchase programme (APP) hinges on medium-term inflation prospects, ECB Executive Board member Isabel Schnabel said Tuesday.
9 November 2021 Central Bank News
By David Barwick – FRANKFURT (Econostream) – The economy is going to require considerable policy support for quite a while, European Central Bank Governing Council member Klaas Knot said Tuesday.
9 November 2021 Central Bank News
By David Barwick – FRANKFURT (Econostream) – A high degree of monetary accommodation remains warranted by the inflation outlook, European Central Bank Chief Economist Philip Lane said on Monday.
8 November 2021 Central Bank News
By David Barwick – FRANKFURT (Econostream) – Contact-intensive services contributed significantly to the euro area’s economic expansion recently, but prospects beyond the near term are less certain, the European Central Bank said on Wednesday.
8 November 2021 Central Bank News
By David Barwick – FRANKFURT (Econostream) – The current situation with respect to euro area inflation is highly unusual and will not last, European Central Bank Chief Economist Philip Lane said on Monday.
8 November 2021 Central Bank News
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Mario Centeno on Friday said the pandemic would entail no permanent economic loss and the global economic system would quickly recover.
5 November 2021 Central Bank News
- Should Have Been ‘Part of a Large Package’; Doubts Whether PEPP Will Really End in March
- Announcement of PEPP’s End Seen as Undercutting Pushback Against Rate Expectations
By David Barwick – VIENNA (Econostream) – European Central Bank Governing Council member Robert Holzmann on Friday said he ‘naturally’ had ‘sleepless nights’ on account of euro area inflation developments.
5 November 2021 Central Bank News
By David Barwick – FRANKFURT (Econostream) – European Central Bank President Christine Lagarde on Wednesday suggested that it was highly improbable that an initial interest rate hike would occur next year.
3 November 2021 Central Bank News
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau on Tuesday appeared to suggest that climate change could lead to gradually higher inflation.
2 November 2021 Central Bank News
By David Barwick – FRANKFURT (Econostream) – Professional forecasters surveyed by the European Central Bank revised up their inflation expectations markedly, according to the ECB’s Survey of Professional Forecasters for the fourth quarter of 2021, released on Friday.
29 October 2021 Central Bank News
By David Barwick – FRANKFURT (Econostream) – Euro area non-financial corporates were generally optimistic about their prospects in the current quarter and thereafter, the European Central Bank said on Friday.
29 October 2021 Central Bank News
By David Barwick – FRANKFURT (Econostream) – The European Central Bank is closely monitoring the evolution of medium-term inflation risks, ECB Governing Council member Boštjan Vasle said Friday.
29 October 2021 Central Bank News
By David Barwick – FRANKFURT (Econostream) – Time flies at the European Central Bank, where President Christine Lagarde on Thursday unexpectedly deemed it the moment to debate, decide and announce the future of the ECB’s pandemic emergency purchase programme (PEPP).
28 October 2021 Central Bank News
- Insider: ‘do not see a situation that first we need to stop asset purchases and only later on increase the interest rates’
- Insider: ‘see possibilities of a combined strategy’ where ECB hikes rates but still buys government debt
