Lagarde sought to temper expectations of a clear-cut path for rate cuts while acknowledging positive signs in recent wage and inflation trends. During a Frankfurt conference, she explained that "our actions will need to be informed by the latest data at each meeting without committing in advance to a fixed trajectory for future rates." Supporting…
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Although their opinions regarding when to initiate the rate cut varied slightly, the consensus leaned towards action before the summer. Joachim Nagel, President of the Bundesbank, indicated in an interview with the German podcast Table Today that a rate cut before the summer holidays is becoming increasingly probable. Nagel's stance is particularly noteworthy since the…
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Lagarde's comments underscored the delicate balance the ECB aims to maintain in its fight against inflation, which has been a significant concern for economies worldwide. "The Q4 wage numbers are obviously encouraging numbers," she remarked, pointing out that these figures offer a glimmer of hope. However, she quickly added a note of caution, stating, "The…
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Consequently, commercial banks now receive substantial interest earnings on the vast amounts of money the ECB generated during low inflation. The ECB, the central bank for the eurozone's 20 countries, stated, "The deficit reflects the Eurosystem's roles and the essential policy measures undertaken to uphold its principal objective of price stability. This situation does not…
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The reductions come at a time when tensions between ECB officials and the market are high. Investors, however, continue to predict rate cuts as soon as March/April this year; policymakers are opting for what they term a more realistic timeframe of mid-year. Market and authority attention will now be fixed on Chief Economist Philip Lane,…
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On September 25th, at the hearing of the Committee on Economic and Monetary Affairs of the European Parliament, Mario Draghi, the President of ECB, talked about the current economic and inflation outlook for the European Union, the growth of the real GDP (coming at 2.3%), the corporate sector purchase program and the monetary policy in…
Read moreThe European Central Bank (ECB) has decided to leave rates unchanged despite worries about how Brexit will affect the economy. The broad-based major European markets closed mixed on Thursday. The Japanese yen surged by over 1% right after the BBC showed a recorded video in which the BOJ’s governor Kuroda said there is no need…
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