Avalanche of debt to meet private buyers; euro zone govt initiative
Next year, governments in the euro zone will need to persuade private investors to step in and purchase 400 billion euros more in debt, which would put pressure on the region’s shattered bond markets as the European Central Bank continues to withdraw its assistance.The European Central Bank (ECB), which has been essentially a guaranteed debt…
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Amidst hawkish ECB signs, euro records 3-week high; dollar remains unchanged
On Monday, as European Central Bank policymakers argued for more aggressive monetary tightening, the euro surged to a more than three-week high against the dollar and sterling increased to its highest level this month.In anticipation of important U.S. inflation figures this week that could give the Federal Reserve flexibility to delay the pace of hikes…
Euro steeped to the 20-year low, uplifting recession concerns
After facing off against the dollar on Thursday, the euro closed the distance toward a two-decade low. Europe’s energy shortage loomed threateningly over the future’s economic stability. On Wednesday, ever since late 2002, the euro laid flat at $1.01845 after stooping as low as $1.01615. The dollar index hovered close to a 2 decades peak…
ECB tells banks to step up defences against hacks
The European Central Bank is telling euro zone banks zone to step up their defences against cyber-attacks. The ECB’s supervisor stated that this is also in the context of geopolitical tensions such as the stand-off between Russia and Ukraine. Andrea Enria was presenting the results of the ECB’s annual review of banks. This showed that the industry had…
ECB’s Kazaks says July rate hike is unlikely
The European Central Bank could end its stimulus programme earlier than planned. ECB policymaker Martins Kazaks told that it is unlikely to raise its main interest rate in July. Because the investors are expecting this. Investors have brought forward their bets on the first ECB rate hike. Mainly this is after ECB President Christine Lagarde opened the…
Fed rate view brightens European bank stock outlook
European bank shares rose further above a three-year high, boosted by the U.S. Federal Reserve’s signal that it could raise rates faster than expected. This lifted some of the December gloom hanging over the sector. European banking stocks benefitted from a sharp rise in borrowing costs after minutes of the Fed meeting release showed officials…
Euro zone bond markets point to stagflation
Short-dated euro zone bond yields jumped. Long-term inflation expectations hit a new seven-year high. This is by putting pressure on European Central Bank officials for addressing the rising inflation. Meanwhile, the gap between Germany’s 10-year and 30-year bond yields shrank. And this points towards stagflation. The ECB kept policy unchanged. Policymakers around the world are under pressure…
No automatic expansion of bond buying program-Kazimir
ECB policymaker Peter Kazimir told Bloomberg that the ECB will not automatically expand its Asset Purchase Program. This is when its 1.85 trillion-euro pandemic emergency stimulus scheme ends. The ECB’s Pandemic Emergency Purchase Program is expected to end next March. And so, the investors expect the ECB to ramp up other stimulus measures at the…
Private meeting inflation target met by 2025
In a private meeting, European Central Bank (ECB) chief economist Philip Lane revealed that with German economists, the ECB expects to hit its 2% inflation goal by 2025. The ECB had not made this long-term forecast public. Because Lane could face questions about the reports. Lane told the German economists that, the ECB’s medium-term reference showed inflation….
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 that it would not hike rates until it sees inflation reach its 2%…
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