By David Barwick – FRANKFURT (EconoStream) – European Central Bank Governing Council member Jens Weidmann said Thursday that sovereign bond purchases are a valid monetary policy instrument, while cautioning about the risk of fiscal dominance.
9 November 2020
By David Barwick – FRANKFURT (EconoStream) – With the December monetary policy meeting of the European Central Bank still more than a month off, the ECB has plenty of time yet to prepare itself - and financial markets - to make good on President Christine Lagarde’s promise to ‘recalibrate’ the policy stance. So far, there is little indication that the Governing Council is planning to over-deliver.
6 November 2020
By David Barwick – FRANKFURT (EconoStream) – The European Central Bank’s actions in December will benefit from updated staff forecasts that let the Governing Council assess the possible duration of the latest containment measures’ economic impact, Executive Board member Isabel Schnabel said Wednesday.
4 November 2020
4th November 2020 By David Barwick – FRANKFURT (EconoStream) – European Central Bank Executive Board member Yves Mersch said last Friday that the unanimity at the previous day’s Governing Council meeting concerned the high degree of uncertainty prevailing...
4 November 2020
By David Barwick – FRANKFURT (EconoStream) – The economic fallout from the second wave of the pandemic shouldn’t be as severe as the first time around, European Central Bank Executive Board member Isabel Schnabel said Tuesday.
3 November 2020
By David Barwick – FRANKFURT (EconoStream) – European Central Bank Governing Council member Jens Weidmann said Friday that he would not exclude modification of the threshold relevant for banks’ reserve holdings under the ECB’s tiering system.
30 October 2020
By David Barwick – FRANKFURT (EconoStream) – European Central Bank Governing Council member Boštjan Vasle said Friday that economic developments were increasingly likely to undershoot the ECB’s most recent staff macroeconomic forecasts, but that the ECB’s measures to date remained sufficient.
30 October 2020
By David Barwick – FRANKFURT (EconoStream) – The European Central Bank intends to recalibrate its policy stance in December in view of the downside risks to the economy and based on the revised staff macroeconomic forecasts available then, Governing Council member Ignazio Visco said on Friday.
30 October 2020
By David Barwick – FRANKFURT (EconoStream) – The European Central Bank’s decision in December could involve fine-tuning of existing instruments as well as the introduction of a new tool, but in any case will reflect the data available then, ECB Governing Council member Robert Holzmann suggested on Friday.
30 October 2020
By Sophia Rodrigues – SYDNEY (EconoStream) – Bank of Canada has become the latest central bank to provide dual forward guidance on its policy outlook as it aims to provide certainty on interest rates to households and businesses in an environment of uncertainty.
30 October 2020
By Sophia Rodrigues – SYDNEY (EconoStream) – The Reserve Bank of Australia’s bond-buying plan under Quantitative Easing is likely to include bonds in the 5-10 year range but its expectation is that it would also drive down bond yields beyond that term.
30 October 2020
By David Barwick – FRANKFURT (EconoStream) – The Governing Council of the European Central Bank decided at its latest monetary policy meeting that a thorough recalibration of its monetary policy stance would have to wait until December, but vowed that it would not remain passive between now and then, ECB President Christine Lagarde said Thursday.
29 October 2020
By David Barwick – FRANKFURT (EconoStream) – The European Central Bank’s Governing Council faces a choice at Thursday’s monetary policy meeting that could be uncomfortably stark for some of its members. Though financial markets expect another stand-pat decision, events since September 10 may have fostered the sentiment among some participants that the ECB is in danger of falling behind the curve. A surprise outcome is not excluded.
26 October 2020
By Sophia Rodrigues – SYDNEY (EconoStream) – There is a high degree of certainty around most of the monetary policy decisions the Reserve Bank of Australia will announce at the November board meeting but one decision where there is some uncertainty is the rate on Exchange Settlement balances.
22 October 2020
By Sophia Rodrigues – SYDNEY (EconoStream) – The Reserve Bank of Australia introduced a 0.25% target for Australian government bonds in March and everyone called it Yield Curve Control.
22 October 2020
By David Barwick – LONDON (EconoStream) – The Bank of England is not running out of monetary policy room to manoeuvre, Dave Ramsden, Deputy Governor for Markets, Banking and Resolution at the BOE and member of the UK’s Monetary Policy Committee (MPC), said on Wednesday.
21 October 2020
By David Barwick – LONDON (EconoStream) – Downside economic risks are apparently materialising and any change in the Bank of England’s policy stance is more likely to be toward more accommodation, Gertjan Vlieghe, external member of the BOE’s Monetary Policy Committee, said on Tuesday.
20 October 2020
By David Barwick – FRANKFURT (EconoStream) – European Central Bank Governing Council member Pablo Hernandez de Cos on Tuesday said that the crisis was lasting longer than had been expected and that the pandemic’s persistence was increasing the likelihood of structural damage to the economy.
20 October 2020
By David Barwick – FRANKFURT (EconoStream) – Monetary policy in the euro area has to remain accommodative so as to avoid the threat of feedback loops, European Central Bank Governing Council member Jens Weidmann said on Monday.
20 October 2020
By David Barwick – FRANKFURT (EconoStream) – European Central Bank Executive Board member Yves Mersch on Monday said that the most recent information shows the economic recovery to be losing momentum on account of the resurgence of the pandemic.
19 October 2020