Tag: ECB

ECB

ECB Leaves Policy Unchanged; Suggests Dec Easing

The European Central Bank (ECB) made no changes to its monetary policy at its rate-setting meeting on Thursday, but suggested that a package of easing measures could come before year end. Unusually, the Governing Council opened its press release by acknowledging the perilous state of the eurozone economy: “In the current environment of risks clearly […]

ECB Tees Up Dec Easing; Leaves Policy on Hold

The European Central Bank (ECB) Thursday pledged to “recalibrate” its monetary policy by the end of the year, but left the door open to an emergency consultation of its rate-setting body should the economic picture darken ahead of the regularly scheduled December meeting. ECB economists “are already at work” in adjusting forecasts to reflect the […]

ECB Hints at Refinement of ‘Price Stability’ Goal

The European Central Bank (ECB) could refine its approach to achieving price stability during its delayed strategy review, assessing its inflation target and the components of the inflation basket, according to top rate setters Wednesday. The ECB has resumed a strategy review halted by the COVID pandemic, an evaluation that will include whether the current […]

ECB’s Mersch: Sustained EU Fiscal Stimulus Requires Treaty Change

A top European central banker praised the eurozone’s fiscal response to the Covid-induced economic downturn, but warned that further stimulus would most likely require a legal change to the roles of European institutions. Far from establishing a precedent for further fiscal integration, the European Commission’s €750 million fiscal package “does not mean that outside of […]

ECB’s Schnabel Raises Alarm on EU Banking Sector

A top European Central Bank (ECB) official lamented the health of the European banking sector, calling for greater integration and risk sharing across the eurozone. The return on equity for eurozone banks fell to 0.01% at the end of the second quarter from 6% a year earlier, according to Isabel Schnabel, a member of the […]

ECB President Comments on Inflation Targeting

Europe’s top central banker Wednesday suggested that symmetrical inflation targeting could have merit in dispelling the low inflation environment suffered in advanced economies since the financial crisis. Addressing the ECB and its Watchers XXI conference in Frankfurt, ECB President Christine Lagarde noted that many central banks have explored a strategy to overshoot inflation to “explicitly […]

Eurozone Economic Sentiment Improves, But Pace Slows

Economic sentiment in the countries sharing the euro improved in September, but at a slower pace than in previous months, the European Commission reported Tuesday. The Commission’s Economic Sentiment Indicator (ESI) rose to 91.1 in September, an improvement of 3.6 points from the 87.5 result in August. By comparison, August improved 5.1 points over the […]

ECB’s Schnabel Calls for a Euro Carbon Tax

A top European central banker Monday rebuked investors for underpricing the risk of climate change and called for a global carbon price to challenge the ecological and financial harm presented by global warming. “A global climate price is the most powerful way to correct market failure and to set in motion a process whereby firms […]

ECB’s Lagarde Unveils New Transparency Measures

Europe’s top central banker Monday promised greater transparency in its communications with the European Parliament, stepping up efforts to enhance public accountability following a rebuke from a German court back in May. Effective immediately, the European Central Bank (ECB) will publish “the opinions of the ECB Ethics Committee for cases of conflict of interest and […]

ECB: Recovery Uncertain; Monitoring Euro Strength

The eurozone economy faces an uncertain future, despite evidence of a robust third quarter rebound, according to the eurozone’s top central banker. “While incoming data suggest that we will see a strong rebound during the third quarter, the strength of the recovery remains very uncertain,” said European Central Bank President Christine Lagarde, according to the […]