European Central Bank

European Central Bank Not as Hawkish as Feared

April 14, 2022

At this week’s meeting of the European Central Bank Governing Council, policymakers as expected speeded up the planned wind-down of monthly asset purchases, but the overall tone of the decision reads less hawkishly than expected. Planned asset purchases had previously been set at EUR 40 billion per month all this quarter and at EUR 30 […] More

ECB Surprise, a Diplomatic Failure, and Many Price Data Releases

March 10, 2022

In light of risks posed by Russia’s invasion of Ukraine, today’s European Central Bank policy review was not expected to push ahead with its QE exiting strategy, but in fact the pace of the phase-out of asset purchase program bond buying was stepped up: EUR 40 billion will be bought next month, then EUR 30 […] More

ECB Minutes

March 3, 2022

Published minutes from the European Central Bank policy review in early February declare that “compared with the assessment in December, upside risks to the inflation outlook had increased, particularly in the near term. As the increase in inflation was becoming longer-lasting than initially expected, it was remarked that the Governing Council should avoid characterizing inflation […] More

Lessening Quantitative Monetary Support by the European Central Bank

December 16, 2021

The European Central Bank Governing Council left its three main interest rates (a zero percent refinancing rate flanked by a deposit rate of -o.50% and an MLR facility rate of 0.25% unchanged but authorized changes in its quantitative stimulus with the net effect of lessening the degree of accommodation. Projected GDP growth was revised upward, […] More

U.S. GDP, Monetary Policy Statements from ECB & Japan, and So Much More

October 28, 2021

Financial market activity overnight: The dollar and 10-year sovereign debt yields are little changed on this busy Thursday. Equities fell in Asia including losses of 1.2% in China, 1.0% in Japan, 1.2% in Indonesia, and 1.9% thus far in India. European share prices have risen a bit, however, and U.S. futures are also in the […] More

ECB Changes Forward Policy Guidance

July 22, 2021

At today’s scheduled European Central Bank Governing Council meeting, news was made even though the interest rate structure (a zero percent refinancing rate of zero percent since September 2 the quantitative stimulus. A change in expressed guidance over what to expect from the bank’s policy in the future, officials now say that interest rates will […] More

G7 Meetings, ECB Press Conference, and Released CPI and Industrial Production Share Spotlight

June 10, 2021

Climate change and challenges from China and Russia headline the agenda of this year’s Group of Seven summit in Cornwall, U.K.. This is U.S. President Biden’s first summit. The Governing Council of the European Central Bank, as expected, did not modify its accommodative monetary stance nor forward guidance regarding future policy. Key interest rates (a […] More

ECB Governing Council Signals Greater Attention to the Euro

April 22, 2021

As expected, the European Central Bank left its interest rate structure, quantitative policy settings, and forward guidance unchanged at today’s review. The deposit rate will stay at negative 0.5%, and there remains a 1.85 trillion euro envelope on the Pandemic Emergency Purchase Program. The characterization of inflation dismisses the recent acceleration as a development stemming […] More

Spotlight on Europe: ECB Meeting and Several Indicator Releases

April 22, 2021

The weighted DXY dollar index dipped 0.1% overnight despite gains of 0.3% against the Swiss franc, 0.2% versus sterling and 0.1% relative to sterling. A new wave of Turkish lira sales also lifted the dollar 0.5% against the currency. There were modest dollar losses of 0.2% against the Mexican peso and New Zealand dollar and […] More

ECB Maintains Interest Rate Levels and Forward Guidance and Announces Near-Term increase in Pace of PEPP Bond Buying

March 11, 2021

This week’s monetary policy review by the Governing Council of the European Central Bank left the interest rate structure unchanged, with a zero percent refinancing rate flanked by a negative 0.5% overnight deposit rate and a +0.25% rate on the marginal lending facility. Euroland has been less successful than many other places rolling out Covid-19 […] More