Europe - ECB (May 08 - Dec 24)

[behappyalways]

ECB Hikes Rates (As Expected), Unexpectedly Raises Inflation Outlook Amid EU Recession
https://www.zerohedge.com/markets/ecb-h ... -recession

[winston]

Higher rates for longer

European Central Bank President Christine Lagarde said inflation in the euro zone is still “too high and is set to remain so for too long.”

In May, headline inflation was 6.1% for the region, lower than April’s reading of 7% but still three times the ECB’s target of 2%.

Lagarde warned that it’s unlikely the ECB will pause rates, let alone cut them, anytime soon.

Source: CNBC

https://www.cnbc.com/2023/06/27/lagarde ... r%7Cmsapac

[winston]

Record rates in the EU

The ECB raised rates by 25 basis points to 4%, a record high reached after 10th consecutive hikes since June 2022 when rates were -0.5%.

The good news is that the ECB indicated it may be holding off further hikes.

“ECB interest rates have reached levels that … will make a substantial contribution to the timely return of inflation to the target,” the bank’s council said.

Source: CNBC

[winston]

Europe’s biggest money managers bet ECB rates haven’t hit a peak

As a net energy importer, the region is particularly exposed to rising prices if the crisis in the Middle East escalates, and markets are underestimating the possibility of additional tightening in response. That leaves short-maturity government bonds particularly vulnerable.

Italy’s debt load makes the EU’s third-biggest economy especially fragile in the face of tighter policy.

The ECB’s single mandate of price stability also makes Europe’s policy makers more likely to hike in the face of rising energy costs.

The gap between Italy and Germany’s 10-year bond yields recently breached 200 basis points, a wide.

Source: Bloomberg

https://www.thestandard.com.hk/breaking ... hit-a-peak

[behappyalways]

After 10 Straight Hikes, ECB 'Pauses' (As Expected); Warns "Inflation Still Expected To Stay Too High"
https://www.zerohedge.com/markets/after ... y-too-high

[behappyalways]

ECB Finally Admits Its "Temporary" Asset Purchases Are Really Permanent
https://www.zerohedge.com/markets/ecb-f ... -permanent

[behappyalways]

ECB Rate-Cut Expectations Soar After EU Inflation Cools More Than Expected
https://www.zerohedge.com/markets/ecb-r ... e-expected

[behappyalways]

ECB Rate-Cut Odds Tumble As EU Inflation Re-Accelerates In December
https://www.zerohedge.com/markets/ecb-r ... s-december

[behappyalways]

Core Inflation in the Euro Area continues to decline, paving the way for a June rate cut
https://twitter.com/AyeshaTariq/status/ ... 1198608640