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ECB’s Makhlouf: 50bp Hike Is Minimum Needed at Our December Meeting

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Gabriel Makhlouf on Monday said that the ECB should hike interest rates this month by at least 50bp.

ECB’s Nagel: ‘What Is Clear Is that the Interest Rate Hikes Must Continue’

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Joachim Nagel on Sunday said it was clear that the ECB had to continue to raise official borrowing costs.

ECB’s Villeroy Backs December Rate Hike of 50BP

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau on Sunday suggested that he would favour a December rate hike by the ECB of 50bp.

ECB’s Nagel: Markets Should Cope Well with Passive Phasing-Out of APP from 1Q 2023

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Joachim Nagel on Friday said that financial markets would be able to deal with the passive roll-off as of next quarter of assets acquired under the ECB’s Asset Purchase Programme (APP).

They Said It: Recent ECB Policymaker Comments on Quantitative Tightening

By David Barwick – FRANKFURT (Econostream) – To the updated version published one week ago of recent public comments by European Central Bank Governing Council members touching on the subject of quantitative tightening, we have added remarks made in the meanwhile.

ECB’s Scicluna: Balance Sheet Reduction to Be Predictable and Gradual

By David Barwick – FRANKFURT (Econostream) – The European Central Bank's effort to reduce the size of its balance sheet would be 'predictable and gradual', ECB Governing Council member Edward Scicluna said Friday.

ECB’s Stournaras: ‘Further Rate Increases Will Need to Be Gradual’

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Yannis Stournaras on Thursday came out in favour of making any more ECB rate hikes ‘gradual’.

ECB Hawk-Dove Ranking

ECB Insight: Lagarde, Perhaps Wary of Growing Council Divergence, Seeks Tighter Control over NCB Communications

By David Barwick – FRANKFURT (Econostream) – European Central Bank President Christine Lagarde is seeking to reinforce the existing ECB communications policy applicable to top Eurosystem officials, according to insiders who spoke to Econostream recently.

TRANSCRIPT: Interview with European Central Bank Governing Council member Mario Centeno dated 29 November 2022

By David Barwick – FRANKFURT (Econostream) – Following is the full transcript of the Econostream interview dated 29 November 2022 with European Central Bank Governing Council member Mario Centeno:

Exclusive: ECB’s Centeno: ‘We Are Probably Close to Neutral Levels … 75BP Is Not a Norm’

- Centeno: If Council ‘sees the need to take policy rates above neutral levels it will do so temporarily’
- Centeno: ‘Very important to underline that any rate hikes above neutral levels are supposed to be temporary’
- Centeno: Rates now closer to normal, but ‘this is no guarantee that further steps are dispensable’
- Centeno: ‘A decision completely aligned with market expectations is not guaranteed’
- Centeno: ‘Adding more predictability and the rationale to our decisions will be key’
- Centeno: ‘Financing conditions are no longer very accommodative’
- Centeno: ‘Our decisions cannot be compared, in size, with those of the Fed, as conditions differ substantially’
- Centeno: Key principles to reduce APP portfolio should exclude any resurgence of fragmentation

ECB’s de Cos: Can’t Say How Far We Will Have to Hike Rates to Achieve Our Objective

By David Barwick – FRANKFURT (Econostream) – It cannot be stated at this point how far the European Central Bank will have to increase interest rates to restore price stability, ECB Governing Council member Pablo Hernández de Cos said Tuesday.

ECB’s Nagel Sticks Closely to Previous Messaging: ‘We Must Not Let up Too Soon’

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Joachim Nagel on Monday reiterated the importance of not letting up in monetary policy’s effort to restore price stability.

ECB Insight: Lagarde Unmistakably Hawkish; ‘It Would Surprise Me’ if Inflation Already at Its Peak

By David Barwick – FRANKFURT (Econostream) – European Central Bank President Christine Lagarde on Monday showed herself from her hawkish side, making it considerably less clear whether the Governing Council would really temper its pace of rate hiking as soon as next month, but also raising the question of how bold forthcoming quantitative tightening decisions will turn out.

ECB’s Lagarde: Terminal Rate to Be Based on Outlook, Shock Persistence, Wages and Expectations

By David Barwick – FRANKFURT (Econostream) – European Central Bank President Christine Lagarde on Monday said that the terminal rate of the ECB's hiking cycle would depend on the outlook, how long shocks are felt, how key variables respond and the effectiveness of ECB monetary policy.

ECB’s Rehn: Could Enter Recession in Winter; Interest Rates Likely to Rise Further

By David Barwick – FRANKFURT (Econostream) – The euro area could enter recession this winter, but the European Central Bank is likely to continue hiking official interest rates, ECB Governing Council member Olli Rehn reiterated on Monday.

ECB’s de Cos: Risks to Growth to the Downside, Inflation Risks Tilted Upwards

By David Barwick – FRANKFURT (Econostream) – The global economy is facing an increased risk of contraction, with risks to growth pointing downwards and those to inflation up, European Central Bank Governing Council member Pablo Hernández de Cos said Monday.

ECB’s Makhlouf: ‘I Would Expect Interest Rates to Continue to Go up’

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Gabriel Makhlouf on Sunday said that interest rates would have to continue rising even after a hike next month.

Exclusive: ECB Insider: See No Realistic Scenario Where We Reduce Balance Sheet by Much Next Year

- ECB insider on QT: ‘Even if there’s a discussion, we still have fears’
- ECB insider: ‘It can be very fragile on European bond markets’
- ECB insider: ‘We can’t just sell the bonds; it’s impossible’
- ECB insider: Could test APP roll-off at €20bn/month if markets, general economic situation permit
- ECB insider: ‘When you do QT, it is very different than when you do QE’; no symmetry
- ECB insider: Sizeable camp would like to be cautious, not commit ourselves to many things

They Said It: Recent ECB Policymaker Comments on Quantitative Tightening

They Said It: Recent ECB Policymaker Comments on Quantitative Tightening