lagarde sintra 2023 copia

Lagarde confirms in Sintra that ECB will continue to raise rates at upcoming meetings

Link Securities | According to on Tuesday, the president of the European Central Bank (ECB), Christine Lagarde, said in her opening speech at the central bank forum in Sintra (Portugal) that the ECB will probably not be able to declare the end of its historic cycle of interest rate hikes any time soon. In that sense, Lagarde said that it is unlikely that in the near future the central…

christine lagarde

ECB: market gives 100% probability of another rate hike in July

Banca March: The ECB followed the script and at Thursday’s meeting increased the price of money once again, raising all its interest rates by 25 b.p., bringing the benchmark rate to 4% and the deposit rate to 3.5%. However, the most relevant aspect was economic expectations and clues as to the monetary authority’s future moves. In these sections, it should be noted that the ECB lowered its GDP growth forecasts…

Christine Lagarde IMF director

ECB hikes 25bp at its June meeting, deposit rate now at 3.50%

Peter Goves (MFS) | This was as guided at the last meeting and is largely due to inflation projections being “too high for too long”. On QT, the policy was extended (again, as widely telegraphed) across all APP from July 2023. EGB spreads remain relatively tight and continue to exhibit relatively low volatility. There were minor changes to the forecasts which show medium term inflation at 2.2% (in 2025, +0.1ppt)….

bce lagarde 1

ECB faces dilemma as inflationary pressures remain at high levels

Jeremy Cunningham, Investment Director, Fixed Income at Capital Group| The European Central Bank (ECB) will face an even more challenging policy environment in 2023. Core inflation appears to have already peaked in the major European economies and should continue to fall as the effects of last year’s sharp increases in energy prices fade. However, underlying inflationary pressures are rising. Higher energy prices are being passed through to a wide range…

bce 4mayo2023

ECB warns of risks associated with liquidity in real estate and debt market

Banca March| The European Central Bank (ECB) continues to see “vulnerability” in the markets given the new interest rate scenario, which in its opinion poses higher financing costs for companies and households that could trigger a liquidity crisis, given the need for massive asset sales in a hypothetical panic scenario. This vulnerability would be concentrated above all in real estate funds and in the debt market, this being one of…

BCE grande

Eurozone M3 monetary aggregate grows by 1.9% in April, lowest reading since July 2014

According to data from the European Central Bank (ECB), the monetary aggregate M3 in the Eurozone grew by 1.9% year-on-year in April (+2.5% in March) to €16.03 trillion. The reading, which was the lowest since July 2014, was slightly below the 2.0% growth rate expected by FactSet consensus analysts. The ECB also published that bank lending to eurozone households rose by 2.5% year-on-year in April to €6.87 trillion, marking the…

BCE Atril

Philip Lane (ECB) says still “plenty of momentum in food prices”

Link Securities | European Central Bank (ECB) chief economist, Ireland’s Philip Lane, said in a recent speech that there is still plenty of momentum in food prices and core inflation. He also noted that real wages have fallen as inflation has outpaced wages in recent years, but that he believes real wages will recover in the coming years. In this regard, Lane said that he sees wage inflation peaking this…


ECB: the APP reinvestments will stop in July

Annalisa Piazza (MFS IM) | The ECB announced today its decision to hike policy rates by 25bp after hiking by 50bp at its March meeting. Inflation is high and pushing it down to its 2% target in the medium term remains the ECB top priority. However, a slower pace of hiking was not a surprise as current levels of rates are already in restrictive territory and the economic picture for…

Chris Lagarde

ECB continues to contradict market expectations with tightening messages

Renta 4 : Today, on a day in which futures point to an opening with little change, the main macro reference will be the number of available job openings in the JOLTS (Job Openings and Labor Turnover Survey) in the US, which is expected to remain high in February (10.5 million expected as opposed to 10.824 million previously), giving signs of a still very solid labour market. This data will…

bancos europeos europa

European banks: systemic risk dissipates after Credit Suisse buyout by UBS

Bankinter : The chairman of the ECB’s Supervisory Board, Andrea Enria, highlights the soundness of the sector and considers that the shareholder remuneration policy (average pay-out ~50.0% of NAB) is reasonable. Banking rose +4.79% on Tuesday. Positive highlights: UBS/Switzerland (CHF 19.42; +12.2%); Commerzbank/Germany (CHF 10.02; +7.4%), Sabadell/Spain (CHF 1.07; +7.5%), Unicredit/Italy (CHF 17.42; +6.9%), ING (CHF 11.16; +5.9%) and BBVA/Spain (CHF 6.57; +5.4%). Analyst’s view: Sector fundamentals are good (liquidity,…