By David Barwick – FRANKFURT (Econostream) – The European Central Bank will decide in the fall whether its next rate hike will be smaller than, equal to or even larger than last week’s 50bp increase, Governing Council member Robert Holzmann said on Sunday.
24 July 2022
By David Barwick – FRANKFURT (Econostream) – European Central Bank President Christine Lagarde on Saturday said the ECB would continue hiking interest rates until the medium-term inflation outlook was consistent with price stability.
23 July 2022
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau on Friday conceded that the ECB had given every indication of not being able to come up with a substantive anti-fragmentation programme by yesterday, but asserted that the achievement reflected policymakers’ unity and commitment.
22 July 2022
By David Barwick – FRANKFURT (Econostream) – Yesterday’s larger-than-expected rate hike by the European Central Bank does not alter the ECB’s determination to take official borrowing costs to neutral, Governing Council member Pablo Hernández de Cos said Friday.
22 July 2022
By David Barwick – FRANKFURT (Econostream) – Thursday’s hike of the European Central Bank’s key interest rates was the start of a series of similar moves, Governing Council member Peter Kažimír said Friday.
22 July 2022
By David Barwick – FRANKFURT (Econostream) – Germany's economy probably stagnated in the second quarter, the German Bundesbank said on Friday in its latest monthly report.
22 July 2022
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Madis Müller on Friday said that the ECB realised that policy normalisation would probably imply some economic suffering, but that this was preferable to runaway inflation.
22 July 2022
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Boštjan Vasle on Friday said that the preservation of uniform monetary policy transmission was necessary to achieve price stability and that the mere existence of the ECB’s new anti-fragmentation tool would support policy normalisation.
22 July 2022
By David Barwick – FRANKFURT (Econostream) – Euro area wage developments are not showing significant signs of second round effects so far, European Central Bank Governing Council member Olli Rehn said on Friday.
22 July 2022
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Joachim Nagel on Friday said that the ECB’s new anti-fragmentation tool, the Transmission Protection Instrument (TPI), would stand up to any legal challenge.
22 July 2022
By David Barwick – FRANKFURT (Econostream) – The European Central Bank on Thursday may have over-delivered with respect to its new anti-fragmentation instrument, even discounting somewhat low expectations, while on the interest rate front we see it as an open question whether it is in the process of over-delivering or has merely frontloaded what the Governing Council intended anyway.
21 July 2022
By David Barwick – FRANKFURT (Econostream) – Considering the European Central Bank Governing Council member by member with respect to the feasibility of a 50-basis-point hike this week, our conclusion is that there are three main scenarios under which the ECB sticks to 25.
20 July 2022
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Gabriel Makhlouf on Tuesday spoke out in favour of a global response to the threat posed to economies by climate change.
19 July 2022
By David Barwick – FRANKFURT (Econostream) – Perhaps the less edge-of-the-seat issue to be decided by this week’s European Central Bank monetary policy meeting, most seem to think, is the size of the first ECB rate hike in a decade, with 25 basis points widely seen as approaching but not quite reaching a certain inevitability.
19 July 2022
- ECB insider: We committed ourselves strongly to 25 basis points in July already
- ECB insider: Still, if case is made that something changed significantly, then we could do more
By David Barwick – FRANKFURT (Econostream) – Striking though the euro’s latest descent on foreign exchange markets may be, with the common currency now having reached parity with the dollar, a review of European Central Bank insider comments in recent months leaves us sceptical that the latest developments will induce the ECB to take any steps it cannot clearly justify on the basis of inflation.
14 July 2022
By David Barwick – FRANKFURT (Econostream) – Suddenly worse economic conditions could strain the resilience of the financial system, European Central Bank Governing Council member Klaas Knot said Wednesday.
13 July 2022
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau on Wednesday said that the euro’s foreign exchange weakness was positive for exporters but unhelpful with respect to inflation.
13 July 2022
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Joachim Nagel on Tuesday said that monetary policy normalisation would inevitably be accompanied by risk premia and that absent evidence to the contrary, he would consider widened spreads to be warranted by fundamentals.
12 July 2022
By David Barwick – FRANKFURT (Econostream) – Of the various members of the European Central Bank’s Governing Council to have spoken out over the last few days, it may be that Central Bank of Cyprus Governor Constantinos Herodotou made the most meaningful contribution to the public discourse about monetary policy normalisation.
11 July 2022