European Central Bank
U.S. PPI and ECB Rate Announcement Fail To Clarify Confusion about Future Inflation and Central Bank Interest Rates
April 11, 2024
Central bankers have consistently sent a message that disinflation will be a bumpy process and that monetary policy normalization will hinge on growing confidence that inflation targets will be fully resecured. In other words, time and evolving information will dictate what is done. It is not apparent if inflation will meet these parameters without a […] More
Another Bad Day for Stocks.. House of Representatives Ends Speaker Impasse.. And Rate Hikes in Turkey and The Philippines
October 26, 2023
Disappointing third-quarter corporate earnings have been the driving force behind the drop in share prices. Stock markets in the Pacific Rim closed down 2.7% in South Korea, 2.1% in Japan, 1.8% in Indonesia, 1.7% in Taiwan, and 1.4% in India. Share prices have lost 0.8% to 1.4% so far in Germany, France, Italy and Great […] More
Like the Fed’s Move, ECB’s 25-Basis Point Refinancing Rate Hike Matched Market Expectations
July 27, 2023
The deposit, refinancing and marginal lending facility rates of the European Central Bank were each lifted by 25 basis points to 3.75%, 4.25% and 4.50%, respectively, after today’s scheduled monetary policy review. There have been no pauses as yet since the tightening cycle began in July 2022, but the cumulative 425 basis point rise in […] More
An Active Session from a Data Release, Central Bank Watching and Market Volatility Standpoint
June 15, 2023
The dollar touched an 8-month high against the yen overnight of 141.5 and currently shows a net 0.9% advance from Wednesday’s close. The dollar edged only 0.1% higher against sterling, the euro and Swiss franc, however. The price of Bitcoin tokens dived over $1000 (or 3.9%) so far today. Prices have diverged for West Texas […] More
ECB Interest Rate Increased by 25 Basis Points
May 4, 2023
The Governing Council of the European Central Bank has hiked its repo, deposit, and marginal lending facility rates by 25 basis points each to 3.75%, 3.25%, and 4.0%. Today’s action represents a further reduction of incremental tightening after a trio of 50-bp hikes in December, February and March and before that hikes of 50 bps […] More
50-Basis Point ECB Interest Rate Hike Matches Signaled Size Prior to Credit Suisse’s Liquidity Crunch
March 16, 2023
The European Central Bank Governing Council announced a 50-basis point hike of its deposit, refinancing and marginal lending facility rates to 3.0%, 3.50% and 3.75%. This matches the likely increment indicated in official comments since the last policy review despite the very recent financial market strains in the U.S. and Europe. Only a few council […] More
European Central Bank
February 2, 2023
The European Central Bank was late to join the rate hiking party. The refinancing rate rate was at zero percent as recently as mid-2022, but officials made up for lost time in the second half of the year, enacting 250 basis points of increase in four incremental moves. Today’s 50-basis point hike to 3.0% matched […] More
More Central Bank Policy Rates Get Raised 10-Year Sovereign Debt Yields Drop
February 2, 2023
Officials at the European Central Bank and Bank of England raised their policy interest rate by 50 basis points to their highest levels since 2008. The size of those increases matched expectations. The policy rates of the Hong Kong and Macao Monetary Authorities matched the Fed’s 25-basis point increase. Brazil’s Selic interest rate was kept […] More
Central Bank Interest Rate Hikes and U.S. Data Clobber Share and Bond Prices, But Dollar Soars
December 15, 2022
No fewer than eight central banks have hiked interest rates today: the European Central Bank, Bank of England, Swiss National Bank, Bangko Sentral ng Pilipinas, and Hong Kong and Macau Monetary Authorities all by 50 basis points and matching the Fed’s action yesterday; the Bank of Norway by 25 basis points; and the Central Bank […] More
ECB Raises Interest Rate and Changes Terms of Pandemic Relief to Banks
October 27, 2022
The European Central Bank engineered its third interest rate hike since midyear, a hike of 75 basis points that matches its previous action. The first hike in July amounted to 50 basis points. The new rate structure is a 2.0% refinancing rate flanked by a 1.50% deposit rate and a 2.25% on the marginal lending […] More
