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Exclusive: ECB’s Kazāks: Would Not Exclude that We Need to Take Stronger Action in July

Exclusive: ECB’s Kazāks: Would not exclude that we need to take stronger action in July
- Kazāks: ‘Fair case to discuss whether 25 basis points in July are still appropriate’
- Kazāks: ‘We should always keep the door open to discussion’ and not carve each step in stone
- Kazāks: Observing indications of expectations mounting; this could justify bigger rate steps
- Kazāks: Increased risk of nonlinearities means frontloading rate hikes would be reasonable
- Kazāks: ‘See further increases in our rates in the remaining meetings at the end of the year’

28 June 2022

TRANSCRIPT: Interview with ECB Governing Council member Kazāks on 27 June 2022

By David Barwick – FRANKFURT (Econostream) – Following is the full transcript of the interview conducted by Econostream on June 27 with Mārtiņš Kazāks, Governor of Latvijas Banka and member of the Governing Council of the European Central Bank:

28 June 2022

ECB’s Lagarde: ‘There Are Clearly Conditions in Which Gradualism Would Not Be Appropriate’

By David Barwick – FRANKFURT (Econostream) – European Central Bank President Christine Lagarde on Tuesday made clear that the ECB could under circumstances abandon the principle of gradualism that it has been preaching for many months.

28 June 2022

ECB’s de Guindos: Increase in Expectations ‘Quite Pervasive’; 25 Basis Points in July ‘Done’

By David Barwick – FRANKFURT (Econostream) – European Central Bank Vice President Luis de Guindos on Friday painted a gloomy economic picture, but although he sounded concerned about inflation expectations, he refused to entertain the possibility that the ECB would hike by more than 25 basis points next month.

24 June 2022

ECB’s de Cos: Tighter Financing Conditions Could Impair Firms’ and Households’ Ability to Pay

By David Barwick – FRANKFURT (Econostream) – Tighter financing conditions in the wake of the European Central Bank’s policy normalization could make it harder for firms and households to make needed payments, ECB Governing Council member Pablo Hernández de Cos said Friday.

24 June 2022

ECB’s Nagel: Risen Inflation Expectations ‘Worrisome’; ‘Must Not Respond with Too Little, Too Late’

By David Barwick – FRANKFURT (Econostream) – Increased inflation expectations are cause for concern and monetary authorities must not react insufficiently or hesitantly, European Central Bank Governing Council member Joachim Nagel said on Thursday.

23 June 2022

ECB: Price Pressures Intensifying; Looking Ahead, Wage Developments Key

By David Barwick – FRANKFURT (Econostream) – Price pressures have become yet broader and yet more intense, the European Central Bank said on Thursday.

23 June 2022

ECB: Stagflation Relatively Unlikely Now as Compared to 1970s; Experts See Risk as Low

By David Barwick – FRANKFURT (Econostream) – The present economic situation is different from that of the 1970s in respects that make stagflation currently less likely, and experts accordingly see little risk of stagflation in the euro area, the European Central Bank said on Wednesday.

22 June 2022

ECB’s Villeroy: France Can Expect Positive Growth and Lower Inflation

By David Barwick – PARIS (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau on Wednesday said that the French economy could expect positive growth in this and the coming years, along with more subdued medium-term inflation.

22 June 2022

ECB: New Measure of Domestic EMU Inflation Shows Domestic Price Pressures Rising

By David Barwick – FRANKFURT (Econostream) – A new measure of domestic euro area inflation indicates that domestic price pressures have been on the rise over the past year and in the years just before the pandemic, the European Central Bank said on Tuesday.

21 June 2022

ECB: Futures Curves Suggest Energy Inflation to Decline in 2023, But Uncertainty Very High

By David Barwick – FRANKFURT (Econostream) – Futures curves indicate that energy inflation should subside next year, but any scenario is subject to great uncertainty, the European Central Bank said on Tuesday.

21 June 2022

ECB’s Lagarde Repeats 25bp Hike in July with Potential for Larger Move in September

By David Barwick – FRANKFURT (Econostream) – European Central Bank President Christine Lagarde on Monday reiterated ECB’s intention to hike interest rates in July by 25 basis points and then to take a potentially larger step in September depending on the inflation outlook.

20 June 2022

Bundesbank Sees Slight 2Q German Economic Growth; Inflation Likely to Remain High Coming Months

By David Barwick – FRANKFURT (Econostream) – German consumer price growth will probably remain high over the next few months and average about 7% for the entire year, the German Bundesbank said on Monday in its latest monthly report.

20 June 2022

ECB: Ukrainian Refugees Could Slightly Ease Euro Area Labour Market Tightness

By David Barwick – FRANKFURT (Econostream) – The influx of Ukrainian refugees due to Russia’s war of aggression against its neighbour has the potential to slightly ease euro area labour market tightness, but the ultimate impact cannot currently be forecast with much reliability, the European Central Bank said on Monday.

20 June 2022

ECB’s Stournaras: New Tool Under Consideration to Deal with Fragmentation

By David Barwick – FRANKFURT (Econostream) – The European Central Bank is considering a new instrument to counter the episodes of fragmentation likely to occur in Europe, ECB Governing Council member Yannis Stournaras said Monday.

20 June 2022

ECB’s Rehn: ECB Firmly Committed to Contain Unwarranted Fragmentation

By David Barwick – FRANKFURT (Econostream) – The European Central Bank is firmly committed to keeping unwarranted fragmentation from interfering with the transmission of its monetary policy, Governing Council member Olli Rehn said on Saturday.

18 June 2022

ECB Insight: No Panic at the Eurotower, But Not Much Else Yet, Either

By David Barwick – FRANKFURT (Econostream) – The statement from the European Central Bank after Wednesday’s ad hoc meeting of the Governing Council suggests an enduring reluctance on the part of monetary authorities to tackle the creation of a new anti-fragmentation instrument.

15 June 2022

Exclusive: ECB Insider: When You Develop an Anti-Fragmentation Tool, It Means You’re Afraid

Exclusive: ECB Insider: When You Develop an Anti-Fragmentation Tool, It Means You’re Afraid
- ECB insider: Would be good to have an anti-fragmentation tool, but there are also risks to this
- ECB insider: Issues of communication make us ‘not that much inclined to work on that instrument’
- ECB insider: PEPP framework can always be renamed and employed as an anti-fragmentation tool

15 June 2022

ECB Insight: Schnabel Sounds Tough on Fragmentation, But Words May Not Be Enough

By David Barwick – PARIS (Econostream) – As determined as European Central Bank Executive Board member Isabel Schnabel is to prevent fragmentation from derailing the ECB’s incipient policy normalisation, it is considerably more questionable whether her verbal intervention on Tuesday evening will achieve the desired effect on any sustained basis.

15 June 2022

ECB’s Schnabel: Our Commitment to the Euro is our Anti-Fragmentation Tool and Has No Limits

By David Barwick – PARIS (Econostream) – The European Central Bank’s unlimited commitment to the euro implies that fragmentation will not be allowed to hamper monetary policy transmission, ECB Executive Board member Isabel Schnabel said Tuesday.

14 June 2022