By David Barwick – PARIS (Econostream) – European Central Bank Executive Board member Fabio Panetta on Wednesday argued for continuing to deploy monetary policy to safeguard the recovery and restore pre-pandemic trend economic growth, a condition in his view for price stability, and said he saw ‘little chance of sustained inflation above 2% in the medium term.’
24 November 2021
By David Barwick – FRANKFURT (Econostream) – European Central Bank insiders are growing less concerned about the possibility of asset purchases running up against the 33% limit on the share of individual countries’ outstanding debt the ECB can possess, based on recent conversations with Econostream.
24 November 2021
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Gabriel Makhlouf on Tuesday said that monetary policy should sit tight for the moment, but that a continuation of current inflation developments would strengthen the case to act.
23 November 2021
By David Barwick – FRANKFURT (Econostream) – Today’s interview by the European Central Bank’s Isabel Schnabel offered a broad and insightful view of how the most hawkish member of the Executive Board sees various key aspects of monetary policy just three weeks before one of the most important recent meetings of the Governing Council.
23 November 2021
- ECB insider: Council will be divided, there will be quite substantial opposition
- ECB insider: Can’t put everything on monpol’s shoulders with no-monetary-financing clause
By David Barwick – FRANKFURT (Econostream) – The European Central Bank should preserve as much as possible of the flexibility of its pandemic emergency purchase programme (PEPP) after the PEPP ends in March, Governing Council member François Villeroy de Galhau said Monday.
22 November 2021
By David Barwick – FRANKFURT (Econostream) – The German economy is likely to put growth on hold for the moment, while consumer price inflation would remain above 3% for months to come, the German Bundesbank said on Monday in its latest monthly report.
22 November 2021
By David Barwick – FRANKFURT (Econostream) – European Central Bank President Christine Lagarde on Friday warned of the negative growth impact from the developments driving high inflation, but the clearly more important takeaway was her new optimism about the possibility of inflation eventually getting to the point where the ECB could start raising interest rates.
22 November 2021
By David Barwick – Frankfurt (Econostream) – The Swedish National Debt Office accepts that with the government expecting a budget surplus in each of the next two years, its reduced debt issuance will contribute to less liquidity, according to Johan Bergström, Head of Funding at the NDO.
19 November 2021
By David Barwick – FRANKFURT (Econostream) – Risks to inflation are tilted to the upside, European Central Bank Governing Council member Jens Weidmann said Wednesday.
19 November 2021
By David Barwick – FRANKFURT (Econostream) – The crucial element of next month’s monetary policy meeting of the European Central Bank Governing Council is the inflation outlook. As Eurosystem staff gear up to make their best guesstimate amid great uncertainty, various insiders shared with Econostream reasonably similar, though still quite tentative views about medium-term prospects for price pressures in the area.
18 November 2021
By David Barwick – FRANKFURT (Econostream) – Though there are certainly others on the European Central Bank Governing Council who are sceptical about some of what the ECB is doing, Council member Robert Holzmann seems highly unlikely at this juncture to be joined by anyone in his campaign to put an end to all quantitative easing.
18 November 2021
- 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