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ECB’s Kazāks: Should and Will Continue to Hike Rates to Keep Inflation from Becoming Entrenched

By David Barwick – FRANKFURT (Econostream) – The European Central Bank must and will hike interest rates further to keep elevated inflation from becoming entrenched, according to ECB Governing Council member Mārtiņš Kazāks late Wednesday.

ECB: To Normalise Monetary Policy on a Meeting-to-Meeting Basis; Price Pressures Spreading

By David Barwick – FRANKFURT (Econostream) – The European Central Bank will continue to normalise policy, but will do so on a meeting-to-meeting basis, the ECB said on Thursday, warning again of spreading price pressures.

ECB: Consumers’ Perception of Past Inflation, Expectations of Future Inflation Post Rises in June

By David Barwick – FRANKFURT (Econostream) – The European Central Bank’s consumer expectations survey, released Thursday for the first time, showed increases in June both in the perception of past inflation and in expectations of future inflation.

ECB: Second-Round Effects Largely Absent Under Euro, But Persistently High Inflation Increases Risk

By David Barwick – FRANKFURT (Econostream) – Although second-round effects in response to more expensive energy have not generally been seen since the common currency’s advent, persistently elevated inflation makes it more likely that these will occur, the European Central Bank said on Wednesday.

ECB: Still Uncertain When Firms Will Start Spending Accumulated Savings on Investment

By David Barwick – FRANKFURT (Econostream) – It remains unknown when euro area companies will begin to devote the net savings accrued during the pandemic to investment, though there are opportunities in need of considerable funding, the European Central Bank said on Wednesday.

ECB: Fiscal Measures Due to War to Add 0.4 Point to GDP, 0.1 Point to Inflation over Medium Term

By David Barwick – FRANKFURT (Econostream) – The positive impact on growth and negative impact on inflation of fiscal measures taken by euro area countries in response to Russia’s war of aggression will be felt primarily in the current year, the European Central Bank said on Monday.

Bank of Greece Deputy Governor Papaconstantinou: ECB Would Adjust Normalisation Pace to Economic Slowdown

By David Barwick – FRANKFURT (Econostream) – Bank of Greece Deputy Governor Christina Papaconstantinou on Monday said that the European Central Bank would need to modify the pace of monetary normalisation if the economy were to slow down significantly.

ECB: Current Oil Price Rise Implies 0.8% Loss in Euro Area Medium-Term Potential Output

By David Barwick – FRANKFURT (Econostream) – The 40% rise in the price of oil incorporated in the latest European Central Bank staff projections implies a medium-term loss in Eurozone potential output of approximately 0.8%, the ECB said on Monday.

ECB: Pandemic Savings Have Only Limited Ability to Cushion Energy Price Rises for Consumers

By David Barwick – FRANKFURT (Econostream) – The nature of savings accumulated during the pandemic is such that this money won’t cushion the impact on consumers of recently more expensive energy, the European Central Bank said on Monday.

ECB Insight: Single-Minded Focus on Inflation Likely to Come Under Pressure as Growth Slows

By David Barwick – FRANKFURT (Econostream) – As the Eurozone’s economic weakening becomes more apparent, the question of whether or indeed when the ship of monetary policy normalisation might start running out of steam becomes more pressing.

They Said It - Recent Monetary Policy Comments Made by ECB Governing Council Members

By David Barwick – FRANKFURT (Econostream) – The following is a compendium of comments made by European Central Bank Governing Council members very directly related to monetary policy’s next steps. We only include forward-looking comments made recently enough to be current. Updates are made on a periodic basis.

ECB’s de Guindos: Exceptional Policies Should Be Gradually Normalised; Inflation Will Guide Us

By David Barwick – FRANKFURT (Econostream) – European Central Bank Vice President Luis de Guindos on Friday said that pandemic policies should be normalised and that the ECB would strive for price stability on the basis of inflation, notwithstanding slower growth.

They Said It - Recent Monetary Policy Comments Made by ECB Governing Council Members

By David Barwick – FRANKFURT (Econostream) – The following is a compendium of comments made by European Central Bank Governing Council members very directly related to monetary policy’s next steps. We only include forward-looking comments made recently enough to be current. Updates are made on a periodic basis.

ECB’s Visco: Worsening Growth Prospects Won’t Force ECB to Abandon Post-September Tightening

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Ignazio Visco on Thursday did not want to commit to a particular magnitude for the expected ECB interest rate hike in September, but suggested that tightening would continue beyond that month despite the brewing economic storm.

ECB Hawk-Dove Ranking: Average of Governing Council Enters Hawkish Territory

ECB’s Stournaras: May Start Reducing Interest Rates in 2023 if We Have a Recession

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Yannis Stournaras on Wednesday suggested that rate cuts might not be in the too-distant future, were Europe to enter recession.

ECB’s Wunsch: Deposit Rate of 1.5% a ‘No-Brainer’ as Long as No Severe Recession

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Pierre Wunsch on Tuesday said that the ECB should get the deposit rate to 1.5% if no severe recession occurred.

ECB’s Nagel: Must Quickly End the Still Very Expansionary Monetary Policy Stance

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Joachim Nagel on Tuesday urged a quick end to what he called a ‘still very expansionary’ ECB monetary policy stance.

ECB’s de Cos: Inflation Risks Remain on the Upside and Have Intensified

By David Barwick – FRANKFURT (Econostream) – Inflation risks are still predominantly to the upside and have worsened, European Central Bank Governing Council member Pablo Hernández de Cos said Tuesday.

ECB’s Makhlouf: Core Eurozone Inflation Shows Spillover of Energy, Commodity Price Rises

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Gabriel Makhlouf on Monday said that core measures of inflation demonstrated that higher price rises for raw materials had affected a much wider range of goods and services.