Central Bank News

ECB Hawk-Dove Ranking: Vujčić Ranked as Mildly Hawkish

ECB’s Schnabel: 50BP Hike in March ‘Necessary Under Virtually All Plausible Scenarios’

By David Barwick – FRANKFURT (Econostream) – The European Central Bank will almost inevitably have to hike interest rates by 50bp next month, when it might provide some indication of its subsequent policy moves, according to ECB Executive Board member Isabel Schnabel on Friday.

ECB’s Villeroy: Interest Rates Should Peak by September; Need Core Inflation Turnaround To Stop Hiking

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau on Friday said that the ECB should hit the terminal rate by the end of September, and left open the size of any rate hikes beyond March’s likely 50bp increase.

ECB Must Be Much More Persistent; Far From Done With Rate Hikes, Nagel Says

By Xavier D’Arcy – BERLIN (Econostream) – The European Central Bank should remain persistent in tackling high inflation, as the effort to restore price stability is far from being finished, Governing Council member Joachim Nagel said on Thursday.

ECB’s Lane: Monetary Policy Adjustment ‘Clearly Tightening Financial Conditions’

By David Barwick – FRANKFURT (Econostream) – The European Central Bank’s monetary tightening has been exerting a clear impact, ECB Executive Board member Philip Lane said Thursday.

ECB Sees Faster Wage Growth, But Underlying Inflation Subsiding

By Xavier D’Arcy – FRANKFURT (Econostream) – Wage growth in the euro area has picked up in recent months, with the assumptions underlying the European Central Bank’s December projections being confirmed by the latest developments in the labour market, the ECB said on Thursday.

ECB’s Panetta: We Need To Take Into Account Risk of Overtightening

By Xavier D’Arcy – FRANKFURT (Econostream) – European Central Bank Governing Council member Fabio Panetta said on Thursday that policymakers should be aware of the risk of overreacting and that smaller, non-mechanical rate hikes would allow monetary policy to avoid costly mistakes.

ECB’s Stournaras: Next Policy Steps to Hinge on Forecasts; Data Indicate Inflation De-escalation

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Yannis Stournaras on Thursday said that the next set of ECB staff macroeconomic forecasts would determine the further course of monetary policy, and that there were indications of an improved outlook on the inflation front.

ECB Insight: de Cos Sets the Stage for Worrying Not Just About Risk of Doing Too Little

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Pablo Hernández de Cos’ latest remarks are a reminder that the ECB is not going to hike by 50bp forever and that March, whilst probably not the time to decelerate, could be the right moment for authorities to start giving more consideration to the increasing risks of doing too much too fast.

ECB’s de Cos: To Be in Better Position to Determine Proper Policy Path With March Forecasts

By David Barwick – FRANKFURT (Econostream) – The European Central Bank will be better able to decide how monetary policy should evolve with the benefit of updated inflation forecasts available in March, Governing Council member Pablo Hernández de Cos said Wednesday.

ECB’s Lagarde Repeats Language of Two Weeks Ago, Calling Growth and Inflation Risks More Balanced

By David Barwick – FRANKFURT (Econostream) – European Central Bank President Christine Lagarde on Wednesday reiterated word for word the key messages of her post-Council meeting statement earlier this month.

Rates To Remain Slightly Above Neutral Until 2025 or 2026, ECB’s Centeno Says

- Centeno: When we stop hiking, we’ll be confident we’ve done enough for price stability
- Centeno: Don’t see upside risks to inflation, given December forecast revisions
- Centeno: ‘Inflation is going down faster than what we expected in December’
- Centeno: Somewhat uneasy about how fast ECB policy tightening has occurred
- Centeno: Observed euro area average wage increase can’t be considered 2d-round effect

ECB To Continue To Take ‘Forceful Action’ Beyond March, Makhlouf Says

By Xavier D’Arcy – BERLIN (Germany) – European Central Bank Governing Council member Gabriel Makhlouf said on Tuesday that he expected rate hikes to continue beyond the March meeting and that he was in favour of taking forceful action against inflation.

They Said It About Policy Tightening - Recent Comments of ECB Governing Council Members

By David Barwick – FRANKFURT (Econostream) – The following is a compendium of comments made by European Central Bank Governing Council members related to the appropriate pace of upcoming ECB monetary policy tightening. We include only comments made since the December 15 Council meeting.

They Said It About Core Inflation - Recent Comments of ECB Governing Council Members

FRANKFURT (Econostream) – The following is a compendium of comments made by European Central Bank Governing Council members related to the monetary policy relevance of core inflation. We include comments made since the December 15 Council meeting.

ECB: Could Need Tighter Monetary Policy if Govt Measures Not Targeted, Temporary and Tailored

By David Barwick – FRANKFURT (Econostream) – Government fiscal measures to offset the blow from high inflation should be targeted, temporary and not distort market signals, lest monetary policy need additional tightening, the European Central Bank said on Monday.

ECB Could Provide Clarity on Terminal Rate in March, Centeno Says

By Xavier D’Arcy – FRANKFURT (Econostream) – European Central Bank Governing Council member Mário Centeno said on Monday that the ECB’s terminal rate should become a lot clearer at its upcoming monetary policy meeting in March.

ECB’s Visco: Should Proceed Gradually and Prudently, With Measured Steps

By David Barwick – FRANKFURT (Econostream) – The European Central Bank must continue tightening monetary policy, but should proceed slowly and cautiously, without taking unduly large steps and guided by incoming information, ECB Governing Council member Ignazio Visco said on Saturday.

ECB’s Schnabel: We Need to Stay the Course and Raise Rates Significantly Further

By Xavier D’Arcy – FRANKFURT (Econostream) – European Central Bank Governing Council member Isabel Schnabel said on Friday that the ECB would carry on with rate hikes and keep rates high until it saw clear signs of easing core inflation.

ECB’s de Cos: Should Roll Back Fiscal Support as Energy Cheapens, or May Need Tighter Monetary Policy

By David Barwick – FRANKFURT (Econostream) – If government spending to mitigate the impact of high energy prices does not give way to more fiscal restraint as energy cheapens, this could ultimately require greater monetary tightening, European Central Bank Governing Council member Pablo Hernández de Cos said Friday.