Central Bank

Decline in Core Inflation Could be Misleading Signal, ECB’s Lane Says

By Xavier D’Arcy – BERLIN (Econostream) – European Central Bank Executive Board member Philip Lane said on Tuesday that he expected core inflation to come down soon, but that this could be a misleading signal.

ECB Hawk-Dove Ranking: Council Becoming Less Hawkish

Still Momentum in Eurozone Food and Core Inflation, ECB’s Lane Says

By Xavier D’Arcy – BERLIN (Econostream) – European Central Bank Executive Board member Philip Lane on Monday said that there was still momentum in core and food inflation in the Eurozone.

ECB Should Keep Hiking Until Underlying Inflation Pressure Subsides, Knot Says

By Xavier D’Arcy – FRANKFURT (Econostream) - The European Central Bank needs to continue raising rates until underlying inflation pressures in the Eurozone have abated, Governing Council member Klaas Knot said on Sunday.

ECB Should Move Forward Cautiously, Visco Says

By Xavier D’Arcy – FRANKFURT (Econostream) – The European Central Bank should proceed in its fight against inflation with caution, ECB Governing Council member Ignazio Visco said on Friday.

ECB Probably Has a Few More Hikes Left, Villeroy Says

By Xavier D’Arcy – FRANKFURT (Econostream) – The European Central Bank is likely to undertake further rate hikes at its upcoming meetings, ECB Governing Council member François Villeroy de Galhau said on Friday.

ECB Insight: More Ground to Cover, Says Lagarde, But Don’t Ask How Much

By David Barwick – FRANKFURT (Econostream) – The European Central Bank delivered more or less as expected on Thursday, opting to slow the pace of its tightening whilst making clear that, given the lack of a clear impact of higher borrowing costs on the real economy, this was not to be understood as the end of the hiking cycle.

ECB Insight: Default Option of 25BP Likely to Prevail as Data Fail to Meet Standard for 50BP

By David Barwick – FRANKFURT (Econostream) – Directly following the European Central Bank Governing Council’s last monetary policy meeting, we inclined to the opinion that another 50bp hike in May was somewhat likelier than the only other reasonable alternative of 25bp.

ECB Says Tightening in Access to Loans Points to ‘Persistent Weakening of Credit Dynamics’

By Xavier D’Arcy – FRANKFURT (Econostream) – The European Central Bank’s latest quarterly Bank Lending Survey, released on Tuesday, showed another strong decline in demand for credit and a significant tightening of financing conditions.

ECB’s de Cos: No Lack of Risks and Vulnerabilities Facing Global Banking System

By David Barwick – FRANKFURT (Econostream) – The global banking system confronts many challenges that argue against relaxing the regulatory framework, European Central Bank Governing Council member Pablo Hernández de Cos said Friday.

ECB Insight: Option of 25BP Hike Leads, but Tally of Council Underscores Risk of Surprise

- Pre-meeting summary below of all ECB Governing Council members' policy views

Exclusive: ECB Insiders Seen Generally Tilting Towards 25BP, but Very Willing to Discuss 50BP

- ECB insider: Won’t be surprised if we hike by 25bp, but wouldn’t exclude another outcome
- ECB insider: Risk of doing too little currently still greater than the risk of doing too much
- ECB insider: Would require a ‘quite negative’ April inflation surprise for me to support 50bp

ECB’s Lane: ‘Current Data Are Indicating That We Should Raise Rates Again’

By David Barwick – FRANKFURT (Econostream) – Available data make it appropriate that the European Central Bank Governing Council hike rates at its policy meeting next week, Executive Board member Philip Lane said Tuesday.

Scant Evidence of Excess Demand Driving Eurozone Inflation, Visco Says

By Xavier D’Arcy – FRANKFURT (Econostream) – European Central Bank Governing Council member Ignazio Visco said on Tuesday that excess demand was not a key driver of inflation in the euro area, despite the unexpected strength of the economy.

ECB’s Schnabel: Inflation Higher and Economy Stronger Than Projected, But Lending to Slow Further

By Xavier D’Arcy and David Barwick – FRANKFURT (Econostream) – The European Central Bank’s May policy decision will depend on data now showing inflation to be higher and the economy stronger than expected, but also likely to confirm a further slowdown of lending, according to ECB Executive Board member Isabel Schnabel on Monday.

Reversal of Inflation Dynamics Not in Sight Despite Falling Headline Inflation, Bundesbank Says

By Xavier D’Arcy – FRANKFURT (Econostream) – A reversal in the dynamics of inflation in Germany is not yet in sight, despite falling headline numbers and easing producer prices, the Bundesbank said on Monday.

ECB’s Panetta Warns of Permanently Higher Interest Rates Due to Geopolitics

By Xavier D’Arcy – FRANKFURT (Econostream) – Geopolitical developments could reverse the fall of the natural rate of interest, permanently driving up key interest rates across the globe, European Central Bank Executive Board member Fabio Panetta said on Monday.

ECB’s Stournaras: ‘Close to the End’ of Hiking, ‘But We Will Still Have Increases’

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Yannis Stournaras on Saturday reiterated that the ECB was close to but had not yet reached the end of the hiking cycle.

ECB’s Wunsch: Second-Round Effects Visible, Need Inflation and Wages to Subside Before We Pause

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Pierre Wunsch on Monday said that second-round inflation effects were visible and that a pause in ECB tightening would require that wages, core inflation and headline inflation subside.

Future ECB Rate Hikes Should Be Limited in Number and Size, Villeroy Says

By Xavier D’Arcy – FRANKFURT (Econostream) – There may be a need for further European Central Bank rate hikes, but these should be limited in number and in size, Governing Council member François Villeroy de Galhau said on Monday.