By David Barwick – FRANKFURT (Econostream) – Just days after the European Central Bank Governing Council decided to hike interest rates by a whopping 75bp for the second time in a row, one of its leading hawks, Klaas Knot, has positioned himself as leaning in the direction of a third such outsize step. He may be getting ahead of himself.
31 October 2022
By David Barwick – ATHENS (Econostream) – Greek banks faces no particular threat of a substantial outflow of deposits and are expected to eventually pass along to their depositors the interest rate hikes of the European Central Bank, a high-level Greek official assured Econostream.
31 October 2022
By David Barwick – FRANKFURT (Econostream) – The European Central Bank should not underestimate the danger of hiking interest rates too rapidly for economic prospects, if the latter turn out to be gloomier than anticipated, ECB Governing Council member Ignazio Visco said on Monday.
31 October 2022
By David Barwick – FRANKFURT (Econostream) – The European Central Bank is planning a non-monetary policy meeting of the Governing Council in northern Finland in February, Econostream understands.
28 October 2022
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Boštjan Vasle on Friday said again that the size of future ECB rate hikes would depend on inflation prospects, adding however that the economic outlook would also play a role.
28 October 2022
By David Barwick – FRANKFURT (Econostream) – The European Central Bank has to take key interest rates at least temporarily into restrictive territory, Governing Council member Peter Kažimír said Friday.
28 October 2022
By David Barwick – FRANKFURT (Econostream) – Just as it surprised on the hawkish side in July, the European Central Bank’s normalisation of policy may eventually include a surprise on the dovish side. While we rate the chances of this in October a tad higher than most observers seem to, we don’t think it will occur now.
25 October 2022
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Joachim Nagel on Monday said that the current monetary stimulus in the euro area had to be withdrawn quickly, and that policy might then have to become restrictive.
17 October 2022
Exclusive: ECB Insider: Expect Lane to Propose 75bp Hike at Upcoming Council Meeting
- ECB insider: Need to Adjust Other Instruments; TLTROs Take Precedence over QT
- ECB insider: Recent Developments More in Line with September’s Risk Scenario
By David Barwick – WASHINGTON (Econostream) – The European Central Bank will hike rates to whatever level the situation requires and cannot have a fixed terminal rate in mind already as this depends on developments, ECB Chief Economist Philip Lane said Saturday.
16 October 2022
By David Barwick – FRANKFURT (Econostream) – It is increasingly likely that the European Central Bank will have to increase borrowing costs to the point of being restrictive, and it should start reducing reinvestment of maturing assets once interest rates are at the neutral level, ECB Governing Council member Klaas Knot said Saturday.
15 October 2022
By David Barwick – WASHINGTON (Econostream) – European Central Bank Governing Council member Joachim Nagel on Saturday called for multiple interest rate hikes to safeguard euro area price stability and for ‘timely’ quantitative tightening.
15 October 2022
By David Barwick – FRANKFURT (Econostream) – The European Central Bank’s consumer expectations survey, released Friday for the second time, showed an increase in August in the perception of past inflation, but expectations of future inflation held steady at July’s level.
7 October 2022
By David Barwick – FRANKFURT (Econostream) – The account of the European Central Bank’s policy meeting of 7-8 September, released by the ECB on Thursday, indicated that a rate hike of 75bp was favoured by a high number of Governing Council members and seen as still leaving monetary policy expansionary.
6 October 2022
By David Barwick – FRANKFURT (Econostream) – The normalisation of European monetary policy is essential to prevent inflation expectations from disanchoring and elevated core inflation from persisting, according to the Central Bank of Ireland on Wednesday.
5 October 2022
By David Barwick – FRANKFURT (Econostream) – The European Central Bank must continue to hike interest rates, given the likely low levels of medium-term slack in the Eurozone economy, according to ECB Executive Board member Isabel Schnabel on Friday.
30 September 2022
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Boštjan Vasle on Thursday indicated that he might support an October rate hike of the same magnitude as the previous hike.
29 September 2022
By David Barwick – VILNIUS (Econostream) – European Central Bank Vice President Luis de Guindos on Thursday called on fiscal and macroprudential policy to complement monetary policy, and urged that macroprudential policy be tightened somewhat in the context of deteriorating growth prospects.
29 September 2022
By David Barwick – FRANKFURT (Econostream) – It is currently more appropriate for monetary policy to apply the principles of frontloading and determination rather than that of gradualism, European Central Bank Governing Council member Olli Rehn said on Wednesday.
28 September 2022
By David Barwick – FRANKFURT (Econostream) – The European Central Bank should hike interest rates next month by at least 50 basis points, according to ECB Governing Council member Mārtiņš Kazāks on Wednesday.
28 September 2022