European Central Bank

  • 2019-07-11 10:17

    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 09:45

    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 09:52

    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 03:29

    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 06:05

    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.

  • 2019-05-29 04:54

    By Luke Heighton

    FRANKFURT (MNI) - Uncertainty surrounding global economic growth prospects has contributed to bouts of high volatility in financial markets, according to a European Central Bank report, while "weaker than expected growth and a possible escalation of trade tensions could trigger further falls in asset prices."

    May's Financial Stability Review (FSR) identified three areas of core concern for the eurozone:

    -- The materialisation of downside risks to economic growth could spark greater financial market volatility.

    -- Persistent downside risks to growth emphasising the need to strengthen the balance sheets of highly indebted firms and governments

    -- Subdued bank profitability prospects related to slow progress in addressing structural issues.

  • 2019-05-17 11:35

    By Luke Heighton

    FRANKFURT (MNI) - The eurozone slowdown may prove temporary, the governor of the Bulgarian National Bank told MNI, but whether Europe emerges from the current soft patch by the second half of 2019 is uncertain.

    "The euro area's economy beat many economists' expectations in the first quarter.

  • 2019-05-09 04:07

    LONDON (MNI) - The Norges Bank kept its key policy rate unchanged at 1.00% following its meeting Thursday.

    The full text of the Norges Bank statement follows.


    Policy rate unchanged at 1.0 percent

    Norges Bank's Executive Board has decided to keep the policy rate unchanged at 1.0 percent.

    In Monetary Policy Report 1/19, which was published on 21 March 2019, the Executive Board's assessment was that capacity utilisation in the Norwegian economy was slightly above a normal level. Underlying inflation was a little higher than the 2 percent inflation target. The policy rate was raised by 0.25 percentage point to 1.0 percent in March.

  • 2019-05-01 05:52

    by Jason Webb

    LONDON (MNI) - The European Central Bank has not discussed the effects of negative interest rates on bank profitability at the level of the Governing Council or board, ECB Vice-President Luis de Guindos said on Wednesday, adding that the main drag on banking profits came from structural factors such as excess capacity and cost inefficiency.

    Here are main points of a speech and question-and-answer session by De Guindos at an OMFIF event in London:

    --"We have not had any discussion in the board or the Governing Council about the side effects of negative interest rates," De Guindos said, in response to a question referring to comments by President Mario Draghi which prompted speculation the ECB could tier its deposit rate.

  • 2019-04-04 07:50

    By Luke Heighton

    FRANKFURT (MNI) - The ECB's March package of monetary policy measures was necessary in light of the "sizeable moderation" in the pace of euro area growth, according to the official account of the Governing Council meeting.

    Here are the key points from the minutes:

    -- "A number of members expressed an initial preference for extending forward guidance through the end of the first quarter of 2020," to provide a "clear easing signal" and be more in line with market expectations of a first rate increase.