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ECB’s Schnabel: Long-Term Inflation Recovery Needs Accommodation, Tolerance for Overshooting

By David Barwick – FRANKFURT (Econostream) – Long-term inflation expectations appear to be headed in the direction of the ECB’s price stability objective, but a sustained realignment requires continued monetary accommodation and tolerance for temporary above-target outcomes, European Central Bank Executive Board member Isabel Schnabel said on Saturday.

ECB Insight: Schnabel Acknowledges Possibility of Inflation Recovery

By David Barwick – FRANKFURT (Econostream) – European Central Bank Executive Board member Isabel Schnabel’s speech over the weekend represents a tentative but important acknowledgment of the potential for euro area inflation to stage the kind of sustainable recovery monetary policymakers had until now seemed to discount.

Central Bank of Ireland Deputy Governor: Monetary Policy Will Normalise in Time

By David Barwick – FRANKFURT (Econostream) – Monetary policy will eventually normalise, a process that could lead to a rise in sovereign bond yields if public debt is elevated, Central Bank of Ireland Deputy Governor Sharon Donnery said Friday.

ECB Insight: Muted Lagarde Interview Could Presage More ‘Steady Hand’

By David Barwick – FRANKFURT (Econostream) – Perhaps the central message of the interview published Friday with European Central Bank President Christine Lagarde is that in fact there is no new message in need of conveying at the moment, at least not to financial markets, and thus no reason for the ECB to alter its ‘steady hand’ approach.

ECB Brief: Weidmann Rehashes Opposition to Asset Purchases, Raises No Objection to Symmetry

ECB’s Lagarde: Rising Credit Risk to Become Fully Visible Only Over Time

By David Barwick – FRANKFURT (Econostream) – European Central Bank President Christine Lagarde on Thursday said that credit risk associated with the pandemic’s impact will be apparent only with time.

ECB’s Stournaras: ECB Monetary Policy Unlikely to Lead to Very High Inflation

By David Barwick – FRANKFURT (Econostream) – The probability that the liquidity created by the European Central Bank’s monetary policy leads to very high inflation is low, ECB Governing Council member Yannis Stournaras said Thursday.

Central Bank of Ireland: Near- to Medium-Term Economic Outlook Improved

By David Barwick – FRANKFURT (Econostream) – Prospects for the Irish economy have improved and risks to growth are balanced, the Central Bank of Ireland said Thursday.

ECB’s Rehn: Economic Outlook Improving But Uncertainties Remain

By David Barwick – FRANKFURT (Econostream) – Euro area economic prospects are brightening but are still uncertain, European Central Bank Governing Council member Olli Rehn said on Thursday.

Bank of Portugal Director: No Discussion at Level of Europe About Extending Government Support

By David Barwick – FRANKFURT (Econostream) – All discussions in Europe about pandemic-related government support concern the withdrawal of this support, reflecting the better-than-expected evolution of the economy, Bank of Portugal Luís Laginha de Sousa said Thursday.

ECB’s Villeroy: Vigilant But Confident About 2021 5.75% French GDP Growth Forecast

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau said Wednesday that he was optimistic about the outlook for French economic growth this year even in the event of another round of pandemic containment measures.

ECB Insight: German Job Market Strength Raises Inflation Stakes

By David Barwick – FRANKFURT (Econostream) – The strong performance of the euro area’s largest national labour market this month raises the stakes for the European Central Bank, suggesting as it does that the missing piece of the medium-term price stability puzzle could conceivably fall into place after all.

Banque de France First Deputy Governor: At Acceleration Point on Road to Recovery

By David Barwick – FRANKFURT (Econostream) – The French economy is at an inflection point from which its recovery should accelerate, Banque de France First Deputy Governor Denis Beau said Tuesday.

ECB’s Lagarde: As Pandemic Passes, Must Shift Focus to Transforming Economy

By David Barwick – FRANKFURT (Econostream) – European Central Bank President Christine Lagarde on Tuesday implicitly recognised the waning of the pandemic-related crisis and called for the focus to shift in tandem with this development from preserving to transforming the economy.

EXCLUSIVE: European Investment Bank: End of PEPP Not a Big Concern for EIB

By David Barwick – Frankfurt (Econostream) – The eventual winding down of the European Central Bank’s pandemic emergency purchase programme (PEPP) is not a major concern for the European Investment Bank.

ECB’s de Guindos Should Handle Transition from PEPP as Smoothly as Possible

By David Barwick – FRANKFURT (Econostream) – The transition from the European Central Bank’s pandemic emergency purchase programme (PEPP) should be as smooth as possible, ECB Vice President Luis de Guindos said Monday.

ECB Brief: De Guindos Sees Economic Outlook Brightening, Breaks No New Ground

ECB’s de Cos: Must Continue to Help Recovery Via Favourable Financing Conditions

By David Barwick – FRANKFURT (Econostream) – The European Central Bank must continue to facilitate a sustainable economic recovery by ensuring that financing conditions remain favourable, ECB Governing Council member Pablo Hernández de Cos said Monday.

ECB Brief: Weidmann Sees Germany in Good Shape, Doesn’t Drop Any Policy Bombs

Bank of Greece: PEPP End Could Boost Greek Government Borrowing Costs

By David Barwick – FRANKFURT (Econostream) – Potentially higher borrowing costs to be borne by the Greek government if the European Central Bank ends its pandemic emergency purchase programme (PEPP) may be one of the hurdles the Greek economy will face in the medium term, according to the Bank of Greece on Monday