All articles tagged with #european central bank
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.
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.
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.
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.
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.
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.
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.
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.
The European Central Bank's digital euro project is approaching a critical decision point with a decisive vote expected in 2026, marking a significant step in the development of a central bank digital currency in Europe.
Christine Lagarde's salary is reported to be 50% higher than what the European Central Bank has officially disclosed, raising questions about transparency and disclosure practices.
Bulgaria has officially adopted the euro, with the Bulgarian central bank's governor joining the ECB Governing Council. While the transition is underway, Bulgarians can still use levs until June 30, with public opinion divided on the move. Bulgaria has been an EU member since 2007 and sees benefits from membership.
European Central Bank President Lagarde suggests the global economy has not yet felt the full impact of tariffs and highlights technological advancements, especially AI, as major transformative forces. She also views the US-China trade tensions as partly posturing, emphasizing the need for dialogue despite current hostilities.
The European Central Bank has kept interest rates steady amid economic uncertainty and ongoing trade disputes with the US, with policymakers cautious about further rate cuts until more clarity on trade agreements and economic forecasts emerge.
The European Central Bank has cut interest rates by 25 basis points to 2% and lowered its inflation expectations below the 2% target, amid a stronger euro, lower energy costs, and sluggish economic growth, as geopolitical tensions and US tariffs pose economic uncertainties.
The Romanian constitutional court annulled the results of the first round of the presidential election and canceled the second round, citing alleged Russian interference through social media. This decision, praised by Western governments, reflects the growing influence of the anti-disinformation paradigm, which prioritizes combating misinformation over traditional democratic processes. The situation draws parallels to the Eurozone crisis, where the European Central Bank prioritized stability over national sovereignty, highlighting tensions between anti-disinformation efforts and postwar liberal democracy.