ECB’s de Cos: Better to Err on the Side of Prolonging Monetary Accommodation

By David Barwick – FRANKFURT (Econostream) – The transitory nature of inflation is reason to take care not to prematurely remove monetary accommodation in the euro area, and flexibility in conducting asset purchases should be retained, European Central Bank Governing Council member Pablo Hernández de Cos said Monday.

November 29, 2021

ECB Insight: Lagarde Interview: Some PR, a Few Policy Insights and a Reprimand

By David Barwick – FRANKFURT (Econostream) – The interview that came out late Friday with European Central Bank President Christine Lagarde was not devoid of insights beyond the probably futile attempt to bolster her standing among citizens of the euro area’s largest member economy, not too delighted with the ECB to begin with and now also up in arms about rates of inflation last seen almost three decades ago.

November 29, 2021

ECB Meeting Account Confirms Preoccupation With Inflation and Differing Views

By David Barwick – FRANKFURT (Econostream) – The account of the European Central Bank’s policy meeting of 27-28 October, released by the ECB on Thursday, confirmed the preoccupation among Governing Council members with inflation and made clear that opinion differed, even if the general view was of an improved medium-term outlook.

November 25, 2021

ECB’s Panetta Sees Little Chance of Sustained Inflation Above 2% in the Medium Term

By David Barwick – PARIS (Econostream) – European Central Bank Executive Board member Fabio Panetta on Wednesday argued for continuing to deploy monetary policy to safeguard the recovery and restore pre-pandemic trend economic growth, a condition in his view for price stability, and said he saw ‘little chance of sustained inflation above 2% in the medium term.’

November 24, 2021

ECB Insight: Waning Concern at the ECB About Hitting 33% Issuer Limit

By David Barwick – FRANKFURT (Econostream) – European Central Bank insiders are growing less concerned about the possibility of asset purchases running up against the 33% limit on the share of individual countries’ outstanding debt the ECB can possess, based on recent conversations with Econostream.

November 24, 2021

ECB’s Villeroy: Should Keep as Much PEPP Flexibility as Possible

By David Barwick – FRANKFURT (Econostream) – The European Central Bank should preserve as much as possible of the flexibility of its pandemic emergency purchase programme (PEPP) after the PEPP ends in March, Governing Council member François Villeroy de Galhau said Monday.

November 22, 2021

ECB Insight: Lagarde Speech Strikes New, More Optimistic Inflation Tone

By David Barwick – FRANKFURT (Econostream) – European Central Bank President Christine Lagarde on Friday warned of the negative growth impact from the developments driving high inflation, but the clearly more important takeaway was her new optimism about the possibility of inflation eventually getting to the point where the ECB could start raising interest rates.

November 22, 2021

EXCLUSIVE: Sweden NDO Head of Funding: Reduced Issuance to Hamper Liquidity

By David Barwick – Frankfurt (Econostream) – The Swedish National Debt Office accepts that with the government expecting a budget surplus in each of the next two years, its reduced debt issuance will contribute to less liquidity, according to Johan Bergström, Head of Funding at the NDO.

November 19, 2021