ECB’s Nagel: Would Caution Against Using Monetary Policy Instruments to Limit Risk Premia
- Nagel: Virtually impossible to be sure whether widened spread is fundamentally justified
- Nagel: ‘A restrictive monetary policy stance may be necessary’
By David Barwick – FRANKFURT (Econostream) – Once the European Central Bank has taken official borrowing costs out of negative territory, any further adjustments will hinge on economic and inflation developments, ECB Executive Board member Fabio Panetta said Friday.
1 July 2022
By David Barwick – FRANKFURT (Econostream) – Following is the full transcript of the interview conducted by Econostream on June 28 with Pablo de Ramón-Laca Clausen, General Director of the Tesoro and Financial Policy, Spain’s sovereign debt issuer:
1 July 2022
- Spain DMO head: Tax revenues increasing very significantly, so funding needs declining
- Spain DMO head: Expect our greenium to settle at around three to four basis points
- Spain DMO head: Debt sustainability not currently a problem in any Eurozone country
- Spain DMO head: Spreads ‘have to be justified by fundamentals’
- Spain DMO head: Anti-fragmentation tool will help ECB tighten policy faster, more credibly
By David Barwick – FRANKFURT (Econostream) – Consistent with her speech the day before, European Central Bank President Christine Lagarde on Wednesday took the opportunity of the policy panel discussion at the ECB Forum on Central Banking 2022 to make clear again that the mantra of gradualism to which she had been so attached until recently is in the process of falling out of favour.
29 June 2022
Exclusive: ECB’s Kazāks: Would not exclude that we need to take stronger action in July
- Kazāks: ‘Fair case to discuss whether 25 basis points in July are still appropriate’
- Kazāks: ‘We should always keep the door open to discussion’ and not carve each step in stone
- Kazāks: Observing indications of expectations mounting; this could justify bigger rate steps
- Kazāks: Increased risk of nonlinearities means frontloading rate hikes would be reasonable
- Kazāks: ‘See further increases in our rates in the remaining meetings at the end of the year’
By David Barwick – FRANKFURT (Econostream) – Following is the full transcript of the interview conducted by Econostream on June 27 with Mārtiņš Kazāks, Governor of Latvijas Banka and member of the Governing Council of the European Central Bank:
28 June 2022
By David Barwick – FRANKFURT (Econostream) – European Central Bank President Christine Lagarde on Tuesday made clear that the ECB could under circumstances abandon the principle of gradualism that it has been preaching for many months.
28 June 2022
By David Barwick – FRANKFURT (Econostream) – European Central Bank Vice President Luis de Guindos on Friday painted a gloomy economic picture, but although he sounded concerned about inflation expectations, he refused to entertain the possibility that the ECB would hike by more than 25 basis points next month.
24 June 2022
By David Barwick – FRANKFURT (Econostream) – Tighter financing conditions in the wake of the European Central Bank’s policy normalization could make it harder for firms and households to make needed payments, ECB Governing Council member Pablo Hernández de Cos said Friday.
24 June 2022
By David Barwick – FRANKFURT (Econostream) – Increased inflation expectations are cause for concern and monetary authorities must not react insufficiently or hesitantly, European Central Bank Governing Council member Joachim Nagel said on Thursday.
23 June 2022
By David Barwick – FRANKFURT (Econostream) – Price pressures have become yet broader and yet more intense, the European Central Bank said on Thursday.
23 June 2022
By David Barwick – FRANKFURT (Econostream) – The present economic situation is different from that of the 1970s in respects that make stagflation currently less likely, and experts accordingly see little risk of stagflation in the euro area, the European Central Bank said on Wednesday.
22 June 2022
By David Barwick – PARIS (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau on Wednesday said that the French economy could expect positive growth in this and the coming years, along with more subdued medium-term inflation.
22 June 2022
By David Barwick – FRANKFURT (Econostream) – A new measure of domestic euro area inflation indicates that domestic price pressures have been on the rise over the past year and in the years just before the pandemic, the European Central Bank said on Tuesday.
21 June 2022
By David Barwick – FRANKFURT (Econostream) – Futures curves indicate that energy inflation should subside next year, but any scenario is subject to great uncertainty, the European Central Bank said on Tuesday.
21 June 2022
By David Barwick – FRANKFURT (Econostream) – European Central Bank President Christine Lagarde on Monday reiterated ECB’s intention to hike interest rates in July by 25 basis points and then to take a potentially larger step in September depending on the inflation outlook.
20 June 2022
By David Barwick – FRANKFURT (Econostream) – German consumer price growth will probably remain high over the next few months and average about 7% for the entire year, the German Bundesbank said on Monday in its latest monthly report.
20 June 2022
By David Barwick – FRANKFURT (Econostream) – The influx of Ukrainian refugees due to Russia’s war of aggression against its neighbour has the potential to slightly ease euro area labour market tightness, but the ultimate impact cannot currently be forecast with much reliability, the European Central Bank said on Monday.
20 June 2022