By David Barwick – FRANKFURT (Econostream) – The European Central Bank will only be able to restore price stability if workers accept lower real wages and firms accept reduced profitability, ECB Chief Economist Philip Lane said Tuesday.
27 September 2022
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau on Tuesday said that monetary policy should stick to its price stability course so as to avoid adding yet more uncertainty to financial markets.
27 September 2022
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Mario Centeno on Monday argued again that the ECB’s monetary policy enjoyed sufficient credibility to make high real interest rates unnecessary to get inflation back down.
26 September 2022
By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Joachim Nagel on Monday said that predominantly upside inflation risks and the threat of a de-anchoring of inflation expectations required additional increases of official borrowing costs.
26 September 2022
By David Barwick – FRANKFURT (Econostream) – European Central Bank President Christine Lagarde on Monday said that the Governing Council intended to continue raising interest rates at its coming meetings even as economic prospects were deteriorating.
26 September 2022
By David Barwick – FRANKFURT (Econostream) – The European Central Bank should adhere to the principles of gradualism and flexibility in normalising monetary policy, ECB Governing Council member Yannis Stournaras urged on Monday.
26 September 2022
By David Barwick – FRANKFURT (Econostream) – The European Central Bank will remain extremely vigilant when it comes to inflation expectations, European Central Bank Governing Council member Pablo Hernández de Cos said Monday.
26 September 2022
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
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
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
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
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
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
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
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
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
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
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
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