German inflation could stay above 2%
German inflation is likely to accelerate from its already high level. The Bundesbank said in a monthly report, that it will stay above 2% through mid-2022. Inflation has surged this year on a plethora of one-off factors from tax hikes to supply bottlenecks and commodity price rises, fueling a debate about the need for exceptionally easy […]
ECB ready to act says Schnabel
ECB policymaker Isabel Schnabel stated that the inflation in the euro area will ease as soon as next year, but the European Central Bank is ready to act. Euro zone inflation has been rising more than expected. But the ECB has stuck to its belief of a temporary spike that is caused by higher prices of oil […]
Euro Zone inflation expectations at highest
A key market gauge of euro zone inflation expectations rose to its highest level since mid-2015. This is further a sign that investor perceptions over the direction of future inflation are shifting. In the past, although relief over a slowdown in the pace of European Central Bank purchases appeared, then the Euro zone bond yields were broadly […]
ECB pledges low rates for even longer to support prices
The European Central Bank pledged to keep interest rates at record lows for even longer to help sluggish inflation in the euro zone rise back to its elusive 2% target. The central bank of the 19 countries that share the euro said it would not hike rates until it sees inflation reach its 2% target […]
ECB to keep policy loose this year despite high inflation risks
The European Central Bank will not change the total size of its asset purchase program at its June 10 meeting. But it will start tapering its pandemic purchases later this year. They also showed inflation risks to the upside, according to a recent poll data. In recent weeks, with an economic recovery underway and price […]
Germany backs Central Bank’s view that inflation jump is temporary, Scholz says
Finance Minister Olaf Scholz said that Germany is monitoring a recent rise in inflation closely. But the government shares the assessment of central banks that the jump in consumer prices is largely driven by temporary factors. When asked if the jump in inflation and the European Central Bank’s ultra-loose monetary policy could become a problem for […]
Property bubbles, corporate debt among Europe’s top risks: ECB
The European Central Bank said in a biannual stability review that, the high debt levels and a property bubble are among Europe’s biggest economic vulnerabilities, weighing on its recovery from a pandemic-induced recession. During the pandemic copious government subsidy kept much of the euro zone afloat. But weaning the bloc off support will be tricky. Because, that […]
ECB’s de Guindos says credit still cheap, cautious on stimulus withdrawal
ECB Vice President Luis de Guindos said that Euro zone borrowers can still finance themselves cheaply despite a recent rise in bond yields. But the European Central Bank should be cautious in removing support for the debt market. The investors have begun to factor in a reduction in the pace of ECB bond purchases. This […]
Euro zone inflation accelerates in April on energy, services
The European Union’s statistics office Eurostat said that the Euro zone inflation accelerated as expected in April. This is because of a sharp rise in the costs of energy and services. The consumer prices in the 19 countries sharing the euro rose 0.6% month-on-month for a 1.6% year-on-year increase, up from 1.3% year-on-year in March said […]
ECB tapering talk is purely speculative
ECB policymaker Francois Villeroy de Galhau said suggestions that the European Central Bank (ECB) could begin winding down exceptional bond purchases early are purely speculative. Villeroy is also governor of the French central bank. He pushed back against recent comments by more hawkish members of the ECB who have suggested it could decide to slow bond […]