• 2019-11-20 08:28

    By Luke Heighton

    FRANKFURT (MNI) - The slowdown in euro area manufacturing may already have spilled over into labour markets, the governor of the Central Bank of Ireland indicated Wednesday, as he underlined the negative economic effects of ongoing US-China trade tensions and the uncertainty caused by Brexit.

    Makhlouf also highlighted financial stability concerns, pointing to the growth in market-based finance as an additional source of vulnerability, and said the European Central Bank should be prepared to "challenge familiar paradigms and theories" in response to prolonged low inflation.

    Here are the key points from the speech in Waterford, Ireland:

    --Makhlouf described the macroeconomic outlook as "mixed," with the global economy experiencing a synchronised slow

  • 2019-10-10 07:36

    LONDON (MNI) - The European Central Bank Governing Council was unanimous in seeing a need for further easing of monetary policy, accounts of the Oct.

  • 2019-09-24 06:57

    By Luke Heighton

    FRANKFURT (MNI) - Monetary policy has "done its duty," the governor of the Bank of France said Tuesday, and it is now the turn of fiscal policy to assume responsibility for driving global growth.

    Francois Villeroy de Galhau also used his speech at the Paris School of Economics to again signal his opposition to restarting the European Central Bank's asset purchase programme, and to caution against the purchase of private assets by central banks.

    Here are the key points from the speech:

    - Villeroy said he supported "many elements" of the package of measures announced by the ECB earlier this month, including the strengthening of the state-dependent forward guidance and the introduction of tiering.

  • 2019-09-16 10:53

    By Luke Heighton

    FRANKFURT (MNI) - Key interest rates could be cut further, the European Central Bank's chief economist said Monday, as he outlined the reasoning behind last week's package of monetary policy measures aimed at boosting growth and inflation.

    However, "the more fiscal policy contributes to boosting long-term growth potential and providing cyclical stabilisation," Philip Lane warned, "the quicker will be the effects of monetary policy interventions on inflation and the economy."

    Here are key points from the speech in Frankfurt:

    -- "If needed," Lane said, "we can further lower the deposit facility rate and, with it, the overnight money market rate.

  • 2019-09-04 08:26

    By Luke Heighton

    FRANKFURT (MNI) - The European Central Bank's purchase of corporate bonds helped ease financing conditions for euro area firms without access to bond-based financing, a paper published on Wednesday has concluded.

    The ECB began buying investment-grade euro-denominated bonds issued by non-financial corporations in March 2016, under the Corporate Sector Purchase programme (CSPP), in conjunction with a cut in key interest rates, the announcement of a new series of targeted longer-term refinancing operations (TLTROs), and an increase in monthly asset purchases.

    "CSPP creates spare capacity in banks' balance sheets that they can use to lend to bank-dependent firms, mainly small and medium-sized enterprises (SMEs)," the paper said.

    By increasing the net i

  • 2019-07-11 09:17

    By Luke Heighton

    FRANKFURT (MNI) - The Governing Council of the European Central Bank (ECB) has appointed three new members to its supervisory board.

    Edouard Fernandez-Bollo, Kerstin af Jochnick and Elizabeth McCaul will each serve a five-year non-renewable term, and will be responsible for planning and carrying out the ECB's banking supervision.

    Fernandez-Bollo is currently Secretary General of the Autorite de controle prudentiel et de resolution, the French national competent authority.

  • 2019-07-11 08:45

    By Luke Heighton

    FRANKFURT (MNI) - Household inflation expectations may be better predictors of future inflation outcomes than those of professional inflation forecasters, including those of financial markets, the European Central Bank's head of Market Operations said Thursday.

    There is "tentative evidence suggesting that household inflation expectations are better predictors of future inflation outcomes," Benoit Coeure said, as euro area consumers "become less likely to expect inflation outcomes that would be inconsistent with the ECB's definition of price stability."

    Here are the key points from the speech in Frankfurt:

    - Developments over the past year indicate that a growing gap has emerged between the inflation expectations of market participants on one side,

  • 2019-07-04 08:52

    By Luke Heighton

    FRANKFURT (MNI) - The European Central bank has the mandate and the flexibility to exceed self-imposed issuer limits on sovereign bond purchases under its asset purchase programme, Central Bank of Finland governor Olli Rehn said in an interview published today.

    "I took another very close look at this," he said. "The ECJ and the Federal Constitutional Court have clearly underlined the independence and flexibility of the ECB within its mandate.

  • 2019-07-01 02:29

    By Les Commons

    HELSINKI (MNI) - Eurozone inflation may vary around the 2% level in the short-term to enable hitting target over time, Bank of Finland Governor Olli Rehn said Monday, highlighting recent comments from European Central Bank Governor Mario Draghi, who pointed to a symmetric approach.

    Rehn, hosting a conference on Monetary Policy and the Future of The Euro, again posited that now may be the right time for the ECB to review its policy framework.

    --Other key points from Rehn's opening remarks

    Looking ahead, the Governing Council stands ready to adjust all of its instruments, as appropriate, so that inflation continues to converge towards our inflation aim in a sustained manner.

    --In the longer view, the ECB now operates in a new environment where lo

  • 2019-06-13 05:05

    By Luke Heighton

    BERN (MNI) - The Swiss National Bank (SNB) could lower its already negative interest rates still further should the economic situation demand it, Governor Thomas Jordan said Thursday.

    "We still have room to manoeuvre, we can go to an even more expansionary monetary policy," Jordan said. "We have sufficient room to change our monetary policy in order to react to certain shocks."

    Asked when the SNB might return to positive interest rates, Jordan said: "If you look at the global economy at this moment, the point of time when interest rates will go up is probably postponed and pushed further into the future.