Three central bankers are considered to be the main “doers” who made Christine Lagarde learn Greek… And sometimes preach the start of the usually boring general councils of the European Central Bank with the phrases “good morning” and “how are you today?” , making serious and seasoned central bankers look askance at each other, with … Read more
As widely expected, the European Central Bank kept interest rates unchanged at today’s board meeting. Interest rates were last raised in September 2023 in the upward cycle that began in July 2022, with the deposit rate reaching 4%. In the next three meetings, the ECB consistently reiterated that interest rates would remain steady for a … Read more
Finance by Stefania Blasioli and Paolo Paronetto Tokyo closes negative. China’s central bank cut the 5-year prime lending rate (LPR) by 25 basis points 3′ reading (Il Sole 24 Ore Radiocor) – The handbrake is on European stock exchanges at the start, the day after a session already characterized by caution which saw the absence … Read more
Finance by Stefania Blasioli and Chiara Di Cristofaro Tokyo interrupts the positive series 3′ reading (Il Sole 24 Ore Radiocor) – European stock markets are moving into negative territory following a lackluster session which saw trading on Wall Street halted for the Martin Luther King Day holiday. The Davos International Forum continues, which will end … Read more
European Central Bank President Christine Lagarde reiterated that borrowing costs will remain high as long as necessary to curb consumer prices – despite the suffering economy. “Our future decisions will ensure that the ECB’s key interest rates are set at sufficiently restrictive levels for as long as necessary,” Lagarde told lawmakers in the European Parliament. … Read more
“I dream of being able to hire more women who are experts in the economy,” says European Central Bank President Christine Lagarde, desiring to break the glass ceiling that still often slows down this gender, which is unfairly said to be weak, but it is “a source of enrichment for the economy.” She is the … Read more
Emphasis continues as long as needed The final stages of the ECB’s interest rate hike are the focus, with core inflation subdued and underlying price pressures stubbornly increasing. Most economic analysts expect central bank officials to temporarily stop raising interest rates after next month’s meeting after the deposit rate reaches 3.75%, although money markets expect … Read more
Finance Minister Michael McGrath has advised the European Central Bank to exhibit caution and consider the impact of raising interest rates on households and firms. He has urged businesses to contribute to the fight against inflation by cutting prices. McGrath shared this sentiment during his meeting with ECB officials in Stockholm, stating that the monetary … Read more
In the fight against inflation, central banks like the ECB use higher interest rates as their primary weapon. By increasing borrowing costs, consumer spending decreases, and demand in the economy falls, resulting in less money and easing inflation. However, this time around, inflation was caused by higher energy prices and supply chain problems, not consumer … Read more
The successive crises related to banks that the world has witnessed in the past years, the most recent of which is the collapse of Credit Suisse and Silicon Valley banks, with the required government intervention, raises questions about the way banks work, which sometimes poses grave risks to the economy. The giant Swiss bank and … Read more