ECB Raises Key Rates by 50 Basis Points, Deviating from Forward Guidance
–Approval of Anti-Fragmentation Tool Allowed Front-Loaded Tightening, Says President Christine Lagarde –Lagarde does not provide forward guidance, says ECB data-dependent By Laurie Laird LONDON (MaceNews) – The European Central Bank raised interest rates by a much-higher than expected 50 basis points following its governing council meeting on Thursday, deviating from the carefully-worded forward guidance issued […]
BOI’s Visco: Second Rate Hike in September ‘Appropriate’ if Long-Term Inflation Forecasts Do Not Improve
ROME (MaceNews) – Bank of Italy Governor Ignazio Visco said on Friday that a second rate hike in September by the European Central Bank could be “appropriate” if long-term inflation forecasts do not improve. Talking at Italy’s annual banking lobby ABI conference, Visco argued, however, that monetary policy normalization, particularly including any additional rate hikes […]
Italy Backs ‘Gradual, Flexible’ Monetary Policy Normalization, Urges ECB to Avoid ‘Hawkish’ Message – Italian Government Sources
By Silvia Marchetti ROME (MaceNews) – Italy is warning against a sudden unwinding of Eurozone monetary policy accommodation and calling for a ‘gradual’ but ‘flexible’ normalization process, according to ruling coalition sources. “It is a very delicate moment for the European Central Bank, and it is paramount to avoid having to exit and then re-enter […]
ECB Preannounces July Rate Hike of 25 Basis Points
–Leaves Open Possibility of Bigger Rise in September By Laurie Laird LONDON (MaceNews) – The European Central Bank will raise interest rates by a quarter percentage point at its next meeting in July with another – potentially larger increase – slated for September, the ECB announced Thursday. “Inflation is undesirably high,” said ECB President Christine […]
Bank of Italy Governor Ignazio Visco: Ready To ‘Leave Behind’ ECB Negative Key Rates Policy, Possible Raise this Summer
By Silvia Marchetti ROME (MaceNews) – Bank of Italy Governor Ignazio Visco said on Tuesday that the European Central Bank could be ready to start raising police rates as early as this summer to tackle the ripple effects of the Russian invasion of Ukraine. “Given that the risk of deflation, which had called for the […]
ECB Cuts Asset Purchases, Could Exit QE in Q3
— Rate Hikes to Come ‘Some Time After’ Asset Purchases End LONDON (MaceNews) – The European Central Bank surprised forecasters, announcing a reduction in asset purchases over the second quarter and raising the possibility of a rate hike this year, following the conclusion of Thursday’s governing council meeting. Purchases under the long-running Asset Purchase Programme will […]
UPDATE: Pres Biden Upgrades Sanctions Vs Russia; ‘It’s a War Without a Cause’
By Frank Csongos and Denny Gulino WASHINGTON (MaceNews) – President Joe Biden announced Thursday new economic sanctions on Russia to punish its military invasion of Ukraine. Biden denounced Russian President Vladimir Putin of waging “naked aggression” and pledged Russia will bear the consequences. “It’s a war without a cause,” he said. Biden said the U.S. […]
ECB Sounds More Hawkish Note But Leaves Policy Unchanged
— President Christine Lagarde Acknowledges that Inflation is More Likely to Overshoot Target (MaceNews) – The European Central Bank “will not be complacent” about record-high eurozone inflation, a more hawkish stance from ECB President and long-term dove Christine Lagarde Thursday. “Compared to December, inflation risks are tilted to the upside, particularly in the near term,” […]
ECB Governing Council Split Over Expansion of APP Programme Announced in December
— Some members argued for a more rapid return to policy normalisation LONDON (MaceNews) – The European Central Bank’s decision to expand its asset purchase programme from April met with spirited opposition from some members of the Governing Council, suggesting deep divisions amongst rate setters, according to minutes of the policy meeting on 15-16 December, […]
Italy Pushes Digital Euro, Aims to Strengthen Single Currency in Post-Covid World- Sources
By Silvia Marchetti ROME (MaceNews) – Italy is pushing for a “speedy” creation of a digital euro in a bid to strengthen the single currency, and it has now become a top post-Covid priority for the financial system, according to ruling coalition sources. “The pandemic has accelerated the process: there’s been a significant boost in […]