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European Central Bank

All articles tagged with #european central bank

Krugman Warns France Is 'Too Big to Save' Amid Bond Sell-Off and Budget Gridlock
global-economy4 days ago

Krugman Warns France Is 'Too Big to Save' Amid Bond Sell-Off and Budget Gridlock

Nobel laureate Paul Krugman argues France has crossed a threshold from 'too big to fail' to 'too big to save' due to unsustainable fiscal policies and political instability. While the European Central Bank retains tools like the Transmission Protection Instrument, former chief Jean-Claude Trichet insists France must first demonstrate credible fiscal responsibility. Allianz Trade notes that while current bond spreads are not at crisis levels, a potential Eurozone-wide contraction could trigger intervention, with the 2027 presidential election posing the next major risk.

via CNBC|
#2027-budget#european-central-bank#france
Schnabel's Early ECB Exit Triggers Major Leadership Reshuffle
global-economy19 days ago

Schnabel's Early ECB Exit Triggers Major Leadership Reshuffle

Isabel Schnabel is leaving the European Central Bank early to join the IMF, triggering a significant leadership reshuffle. Her departure accelerates discussions on the succession of President Christine Lagarde and Chief Economist Philip Lane. The move removes a key hawkish voice from the ECB just as inflation and energy prices remain volatile.

via Financial Times|
#christine-lagarde#european-central-bank#global-economy
ECB Launches Pontes for Wholesale Digital Euro Settlements
finance22 days ago

ECB Launches Pontes for Wholesale Digital Euro Settlements

The European Central Bank (ECB) has launched Pontes, a new platform enabling wholesale banks to settle tokenized asset transactions using central bank money. This move aims to reduce reliance on US-dominated payment networks and private stablecoins. While the retail digital euro faces legislative hurdles, the ECB plans to invest its own funds in tokenized securities via this new infrastructure to gain practical experience.

via Financial Times|
#digital-euro#european-central-bank#finance
ECB Staff Demand Clarity on Lagarde Exit Amid Policy Turbulence
economy27 days ago

ECB Staff Demand Clarity on Lagarde Exit Amid Policy Turbulence

ECB staff have formally requested clarity on potential early departures by President Christine Lagarde and board member Isabel Schnabel, warning that uncertainty could undermine institutional trust and internal reforms. While Lagarde has not confirmed leaving before her 2027 term ends, speculation persists regarding her future role in French politics or the World Economic Forum. This leadership ambiguity coincides with a recent interest rate hike and warnings that the 2% inflation target may not be met by 2027, complicating the ECB's strategic planning during a period of high macroeconomic volatility.

via Euronews.com|
#christine-lagarde#economy#european-central-bank
US sells euros to back the yen, catching the ECB by surprise
global-economy2 months ago

US sells euros to back the yen, catching the ECB by surprise

Washington’s move to sell euros to buy yen blindsided the ECB, marking a rare, less-coordinated Western currency intervention. The action used the Exchange Stabilization Fund without formal coordination with foreign authorities, highlighting a break with decades of mutual trust among central banks and prompting questions about future cooperation in currency markets.

via Financial Times|
#bank-of-japan#central-bank-intervention#currencies
ECB Holds 2.25% as some policymakers weigh a further hike amid energy shocks
economy2 months ago

ECB Holds 2.25% as some policymakers weigh a further hike amid energy shocks

The European Central Bank kept its main rate at 2.25% but some Governing Council members debated whether to raise borrowing costs amid a renewed surge in oil prices; Lagarde said the decision was unanimous yet uncertainty remains and policy will stay data‑dependent as energy shocks feed inflation, with markets pricing further hikes and the ECB forecasting inflation peaking around 3.4% later this year.

via Financial Times|
#christine-lagarde#economy#energy-prices
ECB Tightens Policy for the First Time Since 2023 Amid Energy Shock
economy4 months ago

ECB Tightens Policy for the First Time Since 2023 Amid Energy Shock

The European Central Bank raised its key rates by 25 basis points to 2.25%, the first hike by a G7 central bank since 2023, in response to a persistent energy shock from the Middle East that is feeding inflation. Christine Lagarde said the move was a robust policy decision, not insurance, and the ECB also lifted inflation projections while cutting growth forecasts, with markets pricing in potential further tightening later this year.

via Financial Times|
#economy#european-central-bank#eurozone-interest-rates
ECB raises key rates again as war-driven inflation pressure persists
economy4 months ago

ECB raises key rates again as war-driven inflation pressure persists

The ECB’s Governing Council hiked all three key rates by 25 basis points (to 2.25% deposit facility, 2.40% main refinancing, 2.65% marginal lending), citing inflation pressures from the war-related energy shock. Staff project headline inflation averaging 3.0% in 2026, 2.3% in 2027 and 2.0% in 2028, with growth of 0.8%, 1.2% and 1.5% respectively. The move is data‑dependent; APP/PEPP are being unwound and the Transmission Protection Instrument remains available to safeguard policy transmission.

via European Central Bank|
#economy#energy-prices#european-central-bank
ECB Warns Trump Could Spark Global Financial Crisis
politics4 months ago

ECB Warns Trump Could Spark Global Financial Crisis

Europe’s central bank warns that President Trump’s confrontation with Iran and tariff policies are stress-testing the global financial system, raising the risk of a major crisis as debt swells and asset prices stretch. It flags potential energy shocks from Hormuz and the uncertainty of multilateral cooperation, while White House officials defend the economy’s resilience.

via The Daily Beast|
#european-central-bank#financial-stability#iran
ECB Holds 2% Rate as Energy Shock Tests Inflation Outlook
economy6 months ago

ECB Holds 2% Rate as Energy Shock Tests Inflation Outlook

The ECB keeps its 2% policy rate for the sixth straight meeting as surging energy prices push near-term inflation higher, with 2026 inflation seen around 2.6% and growth trimmed to 0.9% this year; policymakers expect inflation to ease toward 2% in 2027–28, while the war in the Middle East adds uncertainty and traders still anticipate potential rate moves later in the year, and the euro rose after the decision.

via Financial Times|
#economy#energy-prices#european-central-bank
Brussels Countdown: The Race to Succeed Lagarde at the ECB
business7 months ago

Brussels Countdown: The Race to Succeed Lagarde at the ECB

As Christine Lagarde’s term nears its end, three ECB executive-board vacancies will surface next year, triggering a high-stakes Brussels horse-trading over the presidency; Knot is widely viewed as the favorite, with Pablo Hernández de Cos as the insider pick, while several German contenders (Isabel Schnabel, Joachim Nagel, Jörg Kukies) vie for the post and Kristalina Georgieva is a potential fallback.

via politico.eu|
#business#european-central-bank#eurozone
Spain kicks off bid for ECB top job as Lagarde succession talk heats up
economy7 months ago

Spain kicks off bid for ECB top job as Lagarde succession talk heats up

Spain has become the first country to openly bid to succeed Christine Lagarde as ECB president, signaling Madrid’s aim for an influential leadership role at Europe’s central bank. Former Spanish central bank governor Pablo Hernández de Cos is widely seen as a leading candidate, with rivals such as Klaas Knot and a broader 2027 leadership reshuffle likely shaping the field.

via Financial Times|
#central-banks#economy#european-central-bank