By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Joachim Nagel on Friday said that while higher borrowing costs would temporarily slow economic growth, monetary policy tightening was unavoidable.
23 September 2022 Central Bank News
By David Barwick – FRANKFURT (Econostream) – The following is a compendium of comments made by European Central Bank Governing Council members very directly related to monetary policy’s next steps. We strive to include forward-looking comments made recently enough to be current. Updates are made on a periodic basis.
23 September 2022 Central Bank News
By David Barwick – FRANKFURT (Econostream) – Longer-term inflation expectations in the euro area are generally near 2%, but some related developments require close watching, the European Central Bank said on Thursday.
22 September 2022 Central Bank News
By David Barwick – FRANKFURT (Econostream) – Comments by European Central Bank Executive Board member Isabel Schnabel published on Thursday appear to increase the likelihood that the ECB will opt for another 75bp hike next month, which would make for its second outsize rate step in a row.
22 September 2022 Central Bank News
By David Barwick – FRANKFURT (Econostream) – It is not clear by how much the European Central Bank will hike interest rates next month, or where the terminal rate will lie, but there is concern about a drift in inflation expectations, according to ECB Executive Board member Isabel Schnabel on Thursday.
22 September 2022 Central Bank News
By David Barwick – COLOGNE (Econostream) – European Central Bank Vice President Luis de Guindos on Wednesday warned of growing price pressures and called still-accommodative monetary policy inappropriate.
21 September 2022 Central Bank News
Exclusive: ECB Insider: What Everyone Agrees Is That We Need to Take Action
- ECB insider: Could easily picture second-round effects on wages, even if the economy weakens
- ECB insider: We see signs of increased inflation expectations in 2024
- ECB insider: 50bp in September would have undermined our credibility
- ECB insider: All the data show increased inflation all across the board in the coming years
By David Barwick – FRANKFURT (Econostream) – European Central Bank President Christine Lagarde on Tuesday said that the size of the Governing Council’s rate hikes was a way of signalling its firm intention to safeguard price stability and thus to keep expectations in check.
20 September 2022 Central Bank News
By David Barwick – FRANKFURT (Econostream) – Germany can look forward to double-digit inflation readings in the coming months, just as the country's economy experiences a downturn, the German Bundesbank said on Monday in its latest monthly report.
19 September 2022 Central Bank News
By David Barwick – FRANKFURT (Econostream) – The worst thing that could happen from the perspective of monetary policy would be a de-anchoring of inflation expectations, European Central Bank Governing Council member Pablo Hernández de Cos said Monday.
19 September 2022 Central Bank News
By David Barwick – FRANKFURT (Econostream) – Monetary policy cannot be complacent in the current environment, which is why the European Central Bank is frontloading its return to interest rates consistent with price stability, Governing Council member Olli Rehn said on Friday.
16 September 2022 Central Bank News
By David Barwick – FRANKFURT (Econostream) – European Central Bank Vice President Luis de Guindos on Friday declined to either endorse or refute expectations that the Governing Council would hike interest rates by another 75bp in October.
16 September 2022 Central Bank News
By David Barwick – FRANKFURT (Econostream) – European Central Bank Vice President Luis de Guindos on Thursday warned again and again of the possibility that inflation expectations could dis-anchor against the backdrop of persistently elevated spot inflation readings and mainly upside risks.
15 September 2022 Central Bank News
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau on Thursday said that if there were a recession at all, it would be shallow and followed quickly by a strong recovery.
15 September 2022 Central Bank News
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Mario Centeno on Thursday argued that the ECB’s monetary policy enjoyed sufficient credibility to make high real interest rates unnecessary to get inflation back down.
15 September 2022 Central Bank News
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau on Wednesday said that interest rates in the Eurozone could be below or close to 2% by the end of the year.
14 September 2022 Central Bank News
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Gabriel Makhlouf on Wednesday said that the negative effects of high inflation would only become worse if the ECB deferred the tightening of monetary policy.
14 September 2022 Central Bank News
By David Barwick – FRANKFURT (Econostream) – The European Central Bank will need to continue hiking interest rates in the context of higher energy prices, faster wage growth and a weaker euro, ECB Chief Economist Philip Lane said Wednesday.
14 September 2022 Central Bank News
Exclusive: ECB Insider: If Price Stability Requires Restrictive Policy, Then We Must Become Restrictive
- ECB insider: ‘Wrong’ to think we would only enter restrictive territory reluctantly
- ECB insider: Must contain mid-term inflation at 2%, that is ‘the main thing’
Exclusive: ECB Insider: QT is ‘Just the Next Step’; Need to Discuss it and ‘Better Sooner than Later’
- ECB insider: I want to discuss QT as soon as possible
- ECB insider: Discussion of QT within Governing Council ‘could be’ in October