Tag: Draghi

ECB raised key rates by 50 bps in its February monetary policy decision following a 50-bps rate hike in December, and matching expectations from most analysts.  EU borrowing costs are at the highest level since late 2008 and ECB President pledged to deliver another 50bps rate hike at its next monetary policy meeting in March. The deposit facility rate is now 2%, the refinancing rate 2.5% and the marginal lending to 2.75%, a level not seen in fourteen years. The central bank … Continue reading “ECB Raises Rates Another 50bps, Banking Sector Resilient”

ECB raised key rates by 50 bps in its February monetary policy decision following a 50-bps rate hike in December, and matching expectations from most analysts.  EU borrowing costs are at the highest level since late 2008 and ECB President pledged to deliver another 50bps rate hike at its next monetary policy meeting in March. The deposit facility rate is now 2%, the refinancing rate 2.5% and the marginal lending to 2.75%, a level not seen in fourteen years. The central bank … Continue reading “ECB Raises Rates Another 50bps, Lagarde Says Another 50bps in March”

ECB raised key rates by 50 bps in its December monetary policy decision following a 75-bps rate hike in October, and matching expectations from most analysts. The deposit facility rate is now 2%, the refinancing rate 2.5% and the marginal lending to 2.75%, a level not seen in fourteen years. Policymakers also said expects to raise interest rates further, to ensure the timely return of 2% inflation target. Inflation forecasts were revised higher, with average inflation seen reaching 8.4% in 2022 … Continue reading “ECB Raises Rates Another 50 bps as Expected, Forecasts Higher Inflation”

ECB raised key rates by 75 bps in its October monetary policy decision following a 75-bps rate hike in September, and matching expectations from most analysts.  Policymakers also said expects to raise interest rates further, to ensure the timely return of 2% inflation target. Will continue applying flexibility in reinvesting redemptions coming due in the PEPP portfolio. At the same time, the ECB changed the terms and conditions of the third series of TLTRO III, by adjusting the interest rates … Continue reading “ECB Raises Rates Another 75 bps as Expected TLTRO Terms and Conditions Recalibrated”

ECB raised key rates by 75 bps in its July monetary policy decision following a 50bps rate hike in July, and matching expectations from most analysts.  Policymakers also said that interest rates should rise further over the next several meetings. The central bank significantly revised up their inflation projections to average 8.1% in 2022, 5.5% in 2023 and 2.3% in 2024 while growth was revised lower to 3.1% in 2022, 0.9% in 2023 and 1.9% in 2024. ECB Monetary Policy … Continue reading “ECB Raises Key Rates 75 bps as Expected with Inflation Revised Higher and Growth Lower”

ECB raised key rates by 50 bps in its July monetary policy decision. The market was not totally surprised given President Lagarde comments yesterday, but ECB had been saying intended to raise key interest rates by 25 bps at this meeting. The euro jumped on the decision with EUR/USD moving up from 1.0190 to 1.0250 with the ECB frontloading its interest rate increases. The TPI mechanism was introduced to counteract fragmentation risks but seems all very murky. Looking further ahead, ECB … Continue reading “ECB Raises Key Rates 50 bps vs 25 bps Expected Approves Transmission Protection Instrument”

ECB left rates unchanged as expected in June calling for an end to asset purchases. ECB Intends to raise key interest rates by 25 bps at July meeting. Looking further ahead, ECB expects to raise rates again in September. The bank left deposit facility interest rates at -.50% and held steady rates on the main refinancing operations and on the marginal lending facility unchanged. ECB Monetary Policy Decision 9 June 2022 Deposit facility rate -0.50% Main refinancing rate 0.00% Marginal … Continue reading “ECB Leaves Rates Unchanged as Expected, Intends to Raise in July and September”

A top European Central Bank official has raised the prospect of a half percentage point rate increase in July. Dutch central bank chief Klaas Knot said if inflation continues to climb then rates may need to be raised. This was the first time such an aggressive shift has been suggested. The ECB left rates unchanged as expected in April. The bank left deposit facility interest rates at -.50%. Highlights Dutch central bank chief Klaas Knot is one of the more … Continue reading “Dutch Central Bank Chief First ECB Governor To Raise Prospect of 50Bps Rate Rise”

ECB left rates unchanged as expected in April. The bank left deposit facility interest rates at -.50% and held steady rates on the main refinancing operations and on the marginal lending facility unchanged. ECB reaffirmed commitment to end bond purchases in Q3 this year. Stresses on flexibility when it comes to making any future decisions. ECB Monetary Policy Decision 14 April 2022 Deposit facility rate -0.50% Main refinancing rate 0.00% Marginal lending facility 0.25% Highlights Reaffirms that APP purchases will … Continue reading “ECB Leaves Rates Unchanged as Expected, Stresses on Flexibility in Making Future Decisions”

ECB left rates unchanged as expected in March. The bank left deposit facility interest rates at -.50% and held steady rates on the main refinancing operations and on the marginal lending facility unchanged. ECB added a commitment to end bond purchases in Q3 this year. ECB governing council expects net purchases to end shortly before it starts raising rates ECB Monetary Policy Decision 10 March 2022 Deposit facility rate -0.50% Main refinancing rate 0.00% Marginal lending facility 0.25% Highlights ECB … Continue reading “ECB Leaves Rates Unchanged as Expected, Commitment to End Bond Purchases in Q3 2022”