European Central Bank

  • 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.

  • 2019-03-27 05:56


    By Luke Heighton

    FRANKFURT (MNI) - The precise terms of new Targeted Longer-Term Refinancing Operations "will depend on how the governing council assesses the banking lending outlook," the European Central Bank's chief economist Peter Praet said Wednesday.

    Praet acknowledged that several banks face a "cliff-edge" when existing loans come due, and said it was important to "avoid creating potential new cliffs in the future.

    "Monetary policy is working," he told an audience in Frankfurt, "but it has faced repeated headwinds."

    The ECB's Governing Council was faced with a "delicate call" at its March meeting, Praet said.

  • 2019-03-07 09:18


    By Luke Heighton

    FRANKFURT (MNI) - A fresh round of targeted long-term refinancing operations (TLTROs) was announced by the European Central Bank Thursday, while key interest rates will remain unchanged "at least through the end of 2019."

    TLTRO III will be launched in September this year and end in March 2021, each with a maturity of two years.

    Full details will be announced "in due course," the ECB said, but counterparties will be entitled to borrow up to 30% of the stock of eligible loans as at February 28 2019 at a rate indexed to the interest rate on the main refinancing rate over the life of each operation.

    In another significant move, the ECB also changed its forward guidance on the timing of key interest rate rises from "at least through the summer of 2019,

  • 2019-03-05 07:45


    By Luke Heighton

    FRANKFURT (MNI) - The eurozone's current macroeconomic environment is "unquestionably less favourable than anticipated a few months ago," the First Deputy Governor of the Bank of France said Tuesday, with France expected to grow faster than Germany in 2019.

    Here are the key points from Denis Beau's speech in Strasbourg:

    --In line with the rest of the world, France's economic growth is slowing, albeit to a lesser extent than in some other European countries thanks to a rise in purchasing power and robust domestic demand.

  • 2019-02-27 06:00


    By Luke Heighton

    FRANKFURT (MNI) - German economic growth is expected to continue, Deutsche Bundesbank President Jens Weidmann will say Wednesday, with "no reason to be overly pessimistic about the outlook" despite the recent loss of momentum at home, in the euro area and across the world.

    Weidmann and Executive Board member Johannes Beermann will take part in a press conference at 11am CET in Frankfurt following the release of the Bank's Annual Report for 2018.

    Weidmann will say he believes that economic growth continues to be supported by favourable financing terms, rising employment levels and increasing wages, and will single out the ECB's decision to cease net asset purchases at the end of 2018 as the most significant monetary policy decision of last year, marking "

  • 2019-02-19 10:38


    By Luke Heighton

    FRANKFURT (MNI) - Targeted longer-term refinancing operations (TLTROs) are one of "a large range of tools" at the European Central Bank's disposal, Vice-President Luis de Guindos said in an interview with Le Monde published Tuesday.

    A decision on whether to use TLROs will be taken only after the ECB has conducted a "thorough analysis" of the reasons behind the eurozone's faltering growth, De Guindos said.

  • 2019-01-30 07:00


    By Luke Heighton

    FRANKFURT (MNI) - The ECB is to launch a survey of market participants' expectations in key policy areas, it announced Wednesday.

    A pilot version of the new Survey of Monetary Analysts (SMA) will be launched shortly before national central bank governors assemble in Frankfurt in April 2019.

  • 2019-01-24 05:07


    LONDON (MNI) - The Norges Bank kept its key policy rate unchanged at 0.75% following its meeting Thursday.

    The full text of the Norges Bank statement follows.

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    Policy rate unchanged at 0.75 percent

    Norges Bank's Executive Board has decided to keep the policy rate unchanged at 0.75 percent.

    In Monetary Policy Report 4/18, which was published on 13 December 2018, the Executive Board's assessment was that capacity utilisation in the Norwegian economy was close to a normal level. Underlying inflation was close to the 2 percent target.

  • 2019-01-17 06:24


    By Luke Heighton

    FRANKFURT (MNI) - Key eurozone interest rates could still rise this year, the European Central Bank's 's Sabine Lautenschlaeger said Thursday, as she insisted the recent dip in euro-area inflation was 'nothing surprising'.

    Lautenschlaeger, a member of the ECB's Executive Board and Vice-Chair of the Supervisory Board of the Single Supervisory Mechanism, said she was waiting to see the March economic projections, but was still of the view that a rate rise is due in 2019.

    Here are the key point from the interview with Politico published Thursday.

    - Lautenschlaeger denied Europe's economy has been 'overly dependent' on quantitative easing for growth, and that the two were not as closely linked as sometimes assumed.

  • 2019-01-16 08:21


    By Luke Heighton

    FRANKFURT (MNI) - The slowdown in the eurozone economy does not mean it will slide into a recession, ECB Executive Board member Yves Mersch said in an interview published Wednesday, while Germany's weak economic performance "is not sufficient" to prompt a monetary policy response.

    But the unevenly-distributed economic fallout from Brexit is a "concern", he added, with uncertainty having negative impacts "on all sectors of the economy and on all countries."

    Here are the key points from his interview with Czech newspaper Hospodarske noviny:

    --"What is currently happening to the [eurozone] economy is still broadly in line with our baseline scenario," Mersch said. "We had already anticipated a slowdown in growth when we announced these baselines.