By Marta Vilar – MADRID (Econostream) – Econostream’s ECB Tone Meter turned slightly less hawkish for the Governing Council this week, while the Executive Board remained broadly unchanged, following Thursday’s 25bp rate hike.
12 June 2026
By David Barwick – FRANKFURT (Econostream) – The first wave of comments after Thursday’s European Central Bank rate hike reinforced the case for another move later this year, but still fell clearly short of making action in July the base case.
12 June 2026
By David Barwick – FRANKFURT (Econostream) – European Central Bank President Christine Lagarde on Thursday did what she had to do – and as we expected yesterday – after the Governing Council’s unsurprising 25bp rate hike, refusing adamantly to provide a post-June roadmap.
11 June 2026
By David Barwick – FRANKFURT (Econostream) – The European Central Bank’s monetary policy decision on Thursday was consistent, at least at first glance, with the “one-and-watch” scenario we outlined ahead of the meeting.
11 June 2026
By David Barwick – FRANKFURT (Econostream) – The European Central Bank’s main decision on June 11 stopped being the source of much suspense some time ago, with a 25bp rate hike the only reasonably probable outcome and the Governing Council likely to be unanimous, given the lack of any obvious dissenter.
10 June 2026
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Pierre Wunsch is hardly the least serious name in the discussion about who will eventually succeed ECB President Christine Lagarde, making his multiple drawbacks as a potential candidate all the more deserving of scrutiny.
3 June 2026
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Olli Rehn's speech on Tuesday mounted the clearest argument yet for characterizing a likely June rate hike as an “insurance hike,” even as it illustrated the peril of the phrase.
2 June 2026
By David Barwick – FRANKFURT (Econostream) – Less than a month after we pointed out that European Central Bank Vice President Luis de Guindos’ praise for ex-Banco de España Governor Pablo Hernández de Cos kept getting fainter, the next step has arrived: the former no longer mentions the latter at all.
1 June 2026
By David Barwick – FRANKFURT (Econostream) – European Central Bank Executive Board member Isabel Schnabel may have made the strongest official case yet for a June rate hike, but Chief Economist Philip Lane has now made clear that one move would not imply another.
26 May 2026
By David Barwick – FRANKFURT (Econostream) – European Central Bank Executive Board member Isabel Schnabel’s Reuters interview today confirms almost point for point the argument we made here yesterday : a June rate hike has become very hard to avoid, but it is premature to infer a sequence of moves.
26 May 2026
By David Barwick – FRANKFURT (Econostream) – A mere eleven days ago, a well-known news agency saw a June hike by the European Central Bank as becoming less likely. The opposite is true, and the only interesting case anymore with respect to June 11 is one in which the Iran conflict ends soon, the resolution looks durable and forward energy prices fall far enough, fast enough, to influence the new macroeconomic projections.
25 May 2026
By David Barwick – FRANKFURT (Econostream) – Conflicting Spanish media reports over whether Prime Minister Pedro Sánchez’s government is prepared to back former European Central Bank Governing Council member Pablo Hernández de Cos for the ECB presidency have turned the succession issue into an open domestic debate while highlighting what we previously noted: clear evidence of official Spanish support remains scarce.
25 May 2026
By David Barwick – FRANKFURT (Econostream) – European Central Bank Executive Board member Philip Lane’s Singapore speech this morning was not much in the way of a June 11 signal, but its limited content touching on the Governing Council’s next decision deserves attention precisely for that reason.
22 May 2026
By David Barwick – FRANKFURT (Econostream) – The list of credible candidates to succeed European Central Bank President Christine Lagarde has barely changed in months, but the absence of new names is itself notable.
21 May 2026
By David Barwick – FRANKFURT (Econostream) – European Central Bank Chief Economist Philip Lane’s speech late Wednesday on energy supply shocks will come across to some as another building block in the case for a June rate hike. It is, however, more cautious than that: it takes the framework ECB President Christine Lagarde laid out in March and shows why June’s policy decision remains an open question.
14 May 2026
By David Barwick – FRANKFURT (Econostream) – We wouldn’t claim that European Central Bank Governing Council member Martin Kocher sounded on balance like a dove in our just-published interview with him, but to the extent he reflects the current thinking of Council hawks, the case for a June hike may still hang in the balance.
13 May 2026
By David Barwick – FRANKFURT (Econostream) – European Central Bank President Christine Lagarde has not undone the hawkish signal of April 30, when she suggested that “directionally, I know where we're heading.” Still, she has made clearer that June 11 may be more open than markets believed.
11 May 2026
By David Barwick – FRANKFURT (Econostream) – Although her remarks on Thursday evening may have been taken hawkishly, European Central Bank Executive Board member Isabel Schnabel did not make the case that the ECB must raise rates in June, even if such an outcome seems likely from today’s perspective. Rather, while continuing to leave the ECB an escape hatch, she emphasized that waiting for wage growth to prove second-round effects could imply waiting too long.
8 May 2026
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau’s final monetary policy speech as Banque de France governor on Thursday was meant to be an exercise in humility. Hypocrisy won.
8 May 2026
By David Barwick – FRANKFURT (Econostream) – Outgoing European Central Bank Vice President Luis de Guindos is not campaigning against former Banco de España Governor Pablo Hernández de Cos for the ECB presidency, but with each successive interview, he sounds less like someone actively supporting him.
4 May 2026