Central banks around the world need to make clear to financial markets the likely need for interest rates to stay higher for longer to sustainably return inflation to target and avoid a rebound in pressures. on prices, the International Monetary Fund said on Thursday. The warning has been issued against a backdrop of significantly loosening […]
Tag: ECB
ECB raises interest rates and signals another similar increase in March
The European Central Bank raised interest rates by 50 basis points on Thursday and explicitly signaled at least one more increase of the same magnitude for next month, reaffirming that it will stay the course in its fight against high inflation. But financial markets immediately took the move as suggesting the tightening cycle could end […]
The supply of government bonds will reach a maximum after quantitative reduction
The supply of euro area government bonds will reach a record high when the European Central Bank (ECB) reduce its debt portfolio, a reduction that will be 15,000 million euros per month on average as of March, by ceasing to reinvest maturing bonds. The ECB will announce details of the quantitative reduction of the debt […]
ECB’s Kazimir: “We need two more increases of 50 basis points”
The European Central Bank should make two more interest rate hikes, of 50 basis points each, despite slowing inflation, Governing Council member Peter Kazimir said on Monday. Inflation has slowed sharply in the past two months, from 10.6% in October to 9.2% in December, but price growth is expected to pick up again in early […]
Lagarde says in Davos that inflation is still too high
The president of the European Central Bank (ECB)Christine Lagarde, has warned this Thursday in the Davos World Economic Forum about the inflationwhich continues to be “too high” despite the decline experienced in recent months, which practically makes it possible to rule out a recession. Lagarde has regretted that many journalists “they emphasize too much in […]
Cash on hand could extend European bond rally
The region’s bonds are delivering the best returns ever for the start of a year as investors put money to work on expectations that the European Central Bank will stop raising rates soon. Even a flood of new bonds or the exit of the biggest buyer from the market were not enough to reduce gains. […]
European economy in “very difficult situation”, says ECB vice president
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“The high inflation rates we are seeing across Europe coincide with an economic slowdown and low growth”, he told the Spanish Confederation of Associations of Young Entrepreneurs (CEAJE) in a December 16 interview published Tuesday on the ECB website. In addition, he stressed the importance of both individuals and companies being prudent and focusing on […]
ECB’s Lagarde sees no stagflation on the horizon but yes short-term inflation
The president of the European Central Bank (ECB), Christine Lagarde, does not foresee a scenario of stagflation (inflation with economic stagnation), but recognizes that in the short term the rise in energy prices and the necessary acceleration of the energy transition will cause a rise in prices . “We do not currently see elements of […]
ECB must not ignore inflation driven by green transition
Europe’s transition to a greener, lower-carbon economy carries a cost that monetary policy cannot ignore, according to Isabel Schnabel, a member of the Executive Board of the European Central Bank. The continent is facing aprolonged period” of upward inflationary pressure due to natural disasters, a reliance on fossil fuels and high demand for scarce resources […]
ECB willing to adjust debt purchases to the evolution of Russia’s invasion of Ukraine
The purchase of debt by the European Central Bank (ECB) may be adjusted to the evolution of the economic consequences of the war in Ukraine after the Russian invasion, admitted its president, Christine Lagarde, who declared that “options remain open” in that area. “We have decided that if the outlook changes and financial conditions become […]