European Central Bank to Accelerate Asset Purchases to Combat Rising Bond Yields
By Laurie Laird LONDON (MaceNews) – The European Central Bank will accelerate purchases under its crisis quantitative easing programme, but otherwise left policy unchanged at Thursday’s Governing Council meeting, as it confronted the recent rise in bond yields. “There was consensus at the table of the Governing Council today,” said ECB President Christine Lagarde, briefing […]
ECB Officials Hint At Easier Policy Stance In Face Of Rising Bond Yields
— Panetta, de Guindos suggest the PEPP envelope could be increased By Laurie Laird LONDON (MaceNews) – Leading European Central Bank officials expressed concern over the recent increase in sovereign bond yields, suggesting that the ECB is open to increasing its quantitative easing programme or even cutting interest rates to keep borrowing costs in check. […]
ECB’s Schnabel Stresses ‘Duration’ of Monetary Policy Support
— Governing Council member Isabel Schnabel suggests limited scope for further rate cuts, QE By Laurie Laird LONDON (MaceNews) — A top European central banker acknowledged Friday the bank’s limited scope for further rate cuts and asset purchases, suggesting the ECB communicate its commitment to extend policy support over the longer term. “When financing conditions […]
ECB’S LAGARDE: ASSET BUYING AS LIKELY TO EXCEED CURRENT ALLOCATION AS TO FALL SHORT
— ECB President Denies New Language Toward PEPP Programme Reflects More Hawkish Attitude By Laurie Laird LONDON (MaceNews) – ECB warnings that it may not expend all of its emergency bond buying do not represent a more hawkish outlook toward the eurozone recovery, according to Europe’s top central banker. The rate-setting Governing Council raised eyebrows […]
ECB SITS ON ITS HANDS. SAYS DECEMBER FORECASTS HOLD DESPITE LOCKDOWN
By Laurie Laird LONDON (MaceNews) – The European Central Bank left all policy instruments on hold at its latest rate-setting meeting, stressing the ECB’s most recent economic projections envisioned the risk of the strong Covid containment measures currently in place through much of Europe. Forecasts published in December “were predicated on lockdowns lasting through”the first […]
EUROZONE INFLATION STUCK IN THE RED AHEAD OF THURSDAY’S ECB MEETING
—HICP Falls by an Annual Rate of 0.3% in December, Marking the Fifth-Straight Decline By Laurie Laird LONDON (MaceNews) — Eurozone inflation remained stubbornly in the red at the close of last year, with the HICP index slumping by an annual pace of 0.3%, according to data released by Eurostat on Wednesday. That decline matches […]
ECB SIGNALS LESS RELIANCE ON QE AMID SIGNS OF GOVERNING COUNCIL DISAGREEMENT
–Minutes of December Meeting Suggest Council May Not Exhaust Emergency QE Allocation By Laurie Laird LONDON (MaceNews) – The European Central Bank could rely more heavily on its long-term refinancing operations in combatting the Covid-related economic downturn, although minutes of the December rate-setting meeting suggest some disagreement about the appropriate policy path. “The focus on […]
ECB’S LAGARDE: BANK TO FOCUS ON ‘FINANCING CONDITIONS;’ DOWNPLAYS EXPANSION OF PEPP
–Ongoing Strategic Review Will Assess Inflation Measurement and ‘Symmetry’ in Meeting Target By Laurie Laird LONDON (MaceNews) – The European Central Bank could continue to rely on its long-term financing operations to provide stimulus to the Covid-stricken euro zone economy rather than expanding its asset purchase programme, according to the Bank’s leader Wednesday. “We’re going […]
ITALY TO SELL MORE USD-DENOMINATED BONDS IN 2021; NEW ‘GREEN’ SECURITIES – SOURCES
By Silvia Marchetti ROME (Mace News) – Italy’s government aims to issue more U.S. dollar-denominated bonds this year alongside new green bonds and retail securities aimed at supporting pandemic measures, according to ruling coalition sources. The goal is to keep diversifying the investor base through new issuances in foreign currencies both in the Global and […]
ECB EXPANDS EMERGENCY QE, LENDING PROGRAMMES; LEAVES RATES ON HOLD
–Inflation Forecast Reduced for 2020; HICP Not Expected to Reach Target Before 2024 By Laurie Laird LONDON (MaceNews) – The European Central Bank Thursday expanded its emergency asset purchase and lending programmes at its latest policy meeting but left its key rates unchanged, raising questions about whether European borrowing costs have reached its so-called “reversal […]