- ECB banking system credit ‘a great deal of money with very, very market-distorting effects’
- The pandemic, ‘economically speaking, is over’
- See inflation plateauing rather than coming back down quickly
- Dovish Bundesbank president would be ‘somewhat problematic’
By David Barwick – FRANKFURT (Econostream) – Limitations in the current macroprudential policy framework can make forceful monetary policy accommodation more necessary, the European Central Bank said on Wednesday.
17 November 2021
- Wunsch: ‘I’m being perceived as someone who changed camps’
17 November 2021
By David Barwick – FRANKFURT (Econostream) – Monetary policymakers have to be patient in the face of possibly only temporarily high inflation, but at the same time be attentive to upside risks, European Central Bank Executive Board member Isabel Schnabel said Wednesday.
17 November 2021
- 2023 HICP forecast likely below 2%, but realised outcome could easily be at 2%
- Must be patient, but can’t exclude that inflationary forces are quite strong and at some point require reaction
- Should recognise that our models risk underpredicting inflationary pressures
- ECB faced with ‘now-or-never’ moment; ‘this is a huge opportunity to re-anchor to 2%’
By David Barwick – FRANKFURT (Econostream) – European Central Bank Vice President Luis de Guindos on Monday appeared to be claiming that shortages affecting economic activity were in effect hampering the euro area’s exit from the crisis.
16 November 2021
By David Barwick – FRANKFURT (Econostream) – A growing market perception that the European Central Bank is likely to continue offering targeted longer-term refinancing operations (TLTROs) on somewhat less advantageous terms in a post-pandemic world stands a decent chance of becoming reality, Econostream believes.
15 November 2021
By David Barwick – FRANKFURT (Econostream) – European Central Bank President Christine Lagarde’s rejection on Monday of the idea that she had not countered market rate expectations with much strength neatly underscored the true motive for what was indeed the weakness of that pushback.
15 November 2021
By David Barwick – FRANKFURT (Econostream) – The duration of the pandemic’s negative impact on potential output remains uncertain and long-term scarring is still possible, the European Central Bank said on Wednesday.
10 November 2021
By David Barwick – FRANKFURT (Econostream) – The European Central Bank’s pandemic emergency purchase programme (PEPP) is likely to end next March, while what happens to asset purchases under the asset purchase programme (APP) hinges on medium-term inflation prospects, ECB Executive Board member Isabel Schnabel said Tuesday.
9 November 2021
By David Barwick – FRANKFURT (Econostream) – The economy is going to require considerable policy support for quite a while, European Central Bank Governing Council member Klaas Knot said Tuesday.
9 November 2021
By David Barwick – FRANKFURT (Econostream) – A high degree of monetary accommodation remains warranted by the inflation outlook, European Central Bank Chief Economist Philip Lane said on Monday.
8 November 2021
By David Barwick – FRANKFURT (Econostream) – Contact-intensive services contributed significantly to the euro area’s economic expansion recently, but prospects beyond the near term are less certain, the European Central Bank said on Wednesday.
8 November 2021
By David Barwick – FRANKFURT (Econostream) – The current situation with respect to euro area inflation is highly unusual and will not last, European Central Bank Chief Economist Philip Lane said on Monday.
8 November 2021
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Mario Centeno on Friday said the pandemic would entail no permanent economic loss and the global economic system would quickly recover.
5 November 2021
- Should Have Been ‘Part of a Large Package’; Doubts Whether PEPP Will Really End in March
- Announcement of PEPP’s End Seen as Undercutting Pushback Against Rate Expectations
By David Barwick – VIENNA (Econostream) – European Central Bank Governing Council member Robert Holzmann on Friday said he ‘naturally’ had ‘sleepless nights’ on account of euro area inflation developments.
5 November 2021
By David Barwick – FRANKFURT (Econostream) – European Central Bank President Christine Lagarde on Wednesday suggested that it was highly improbable that an initial interest rate hike would occur next year.
3 November 2021
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau on Tuesday appeared to suggest that climate change could lead to gradually higher inflation.
2 November 2021
By David Barwick – FRANKFURT (Econostream) – Professional forecasters surveyed by the European Central Bank revised up their inflation expectations markedly, according to the ECB’s Survey of Professional Forecasters for the fourth quarter of 2021, released on Friday.
29 October 2021