Europeans returning from their summer vacation will find a more fragile economy at risk of buckling under the threats of energy bills, record inflation and tighter monetary policy, Bloomberg notes. PMIs due on Tuesday will likely show private sector output contracted for a second month, reinforcing signs that a recession in the 19-nation eurozone is […]
Tag: European Central Bank (ECB)
H. Nagel-Bundesbank: The ECB should continue to raise interest rates
The European Central Bank should keep raising interest rates, according to Bundesbank chief Joachim Nagel, who warned that Germany faces a recession if the energy situation escalates. “Given high inflation, further rate hikes must follow,” Nagel told the Rheinische Post in an interview, declining to put a number on what he expects for the next […]
Schnabel (EKT): Our concern about inflation has not subsided
The outlook for inflation in the Eurozone has not improved since July, when the European Central Bank made its first rate hike in a decade, the bank’s Executive Committee member Isabel Schnabel said today. The ECB surprised analysts in July by raising interest rates by 50 basis points, although it had previously announced that the […]
How the ‘fire’ in the government bond market was contained
By Tasos Dasopoulos The “super ship”, which will contain the rise of the government bonds of the countries of the European South, such as Greece, should be ready by the ECB after the second interest rate increase, since together with the limitation of liquidity the Eurozone will have the risk to slip into recession, due […]
HSBC: Recession in the eurozone is inevitable – End of the year the ECB will stop interest rate hikes
The European Central Bank will stop raising interest rates after the end of 2022 as the eurozone recession and deflating inflation lead to a reduction in monetary policy tightening, HSBC now estimates. A decline in Russian natural gas flows and the resulting increases in energy costs will drive inflation higher than expected to peak at […]
EKT and the ‘ghosts’ of 2012
In Europe we are experiencing a new déjà vu. It was almost a year ago that Christine Lagarde promised that the European Central Bank had learned from the mistakes of previous crises and would not derail the economic recovery by withdrawing emergency support too early. The ECB president’s comments were a reference to the fateful […]
Banks – Stress Tests: With changes the stress test for 2023
By Leonidas Stergiou With a new “hybrid model” the endurance of large and important European banks will be tested in 2023, including all four Greek systemic banks. The exercise will be conducted under an adverse scenario to be announced at the end of the year, along with the final details of the new methodology. The […]
The ECB finds higher inflationary expectations
What does the latest survey reveal about consumer expectations and what messages does the European Central Bank receive for monetary policy decisions in the coming period. Higher inflation in the next 12 months is expected by European consumers, who do not foresee an increase in incomes, but higher expenses. At the same time, they expect […]
Italian 10-year bond yield below 3% for first time since May
Italian bonds rallied, sending the 10-year yield below 3% for the first time since May, as investors expect the new government to meet the commitments needed to “unlock” about 200 billion euros of its capital The European Union. Yields on the country’s 10-year bonds fell 6 basis points to 2.96%, tightening the spread against the […]
ECB: Rising oil prices will reduce GDP growth by 0.8%
Eurozone GDP could contract by around 0.8% in the medium term due to oil price increases, the European Central Bank said. “This is a somewhat limited shock, which should be seen in the context of cumulative growth in potential output, which is estimated by the Commission to be around 5.2% over the next four years,” […]