The ECB has been lowering borrowing costs as post-pandemic price pressures retreat, and recent trade-related turmoil on global markets is adding to the case for further policy easing
The monetary chief told reporters in Frankfurt on Thursday that a huge increase military spending is likely to boost the economy
German bonds held their declines after the European Central Bank cut rates as predicted and indicated its easing phase is drawing to a close
Easing for the sixth time since June, the ECB lowered its deposit rate to 2.5 per cent in a nod to slowing inflation and faltering growth
The impact of a potential trade war with the United States and massive increases in European defence spending and government borrowing loom over a policy meeting Thursday at the European Central Bank, which is expected to cut interest rates by a quarter percentage point. Analysts are widely expecting a cut in the European Central Bank's (ECB) benchmark deposit rate to 2.50 per cent, a step to lower borrowing costs for consumers and businesses in an economy that's struggling to get out of first gear. The bank's monetary policy statement and post-meeting news conference by President Christine Lagarde will be scrutinised for hints about how far the bank will cut rates amid concerns about weak growth. The bank has already reduced the benchmark rate by 1.25 percentage points since June. Meanwhile new concerns that would massively reshuffle the economic picture are likely to intrude: the potential impact of new tariffs on European imports from US President Trump, which could slow growth,
Germany's rate-sensitive two-year bond yield, was down 81 basis points (bps) at 2.18% on Friday. It was set to end the week 16 bps lower in its biggest fall since the week of Sept. 23
It was the fifth ECB rate cut since June and markets expect two or three more this year, driven by arguments that the biggest inflation surge in generations is nearly defeated
With the euro zone suffering through an industrial recession and weak consumption, the case for a cut is so clear that none of the ECB's 26 policymakers have publicly pushed back
In the previous session, the Sensex jumped 631.55 points, or 0.83 per cent, to settle at 76,532.96. The Nifty50 also added 205.85 points, or 0.90 per cent, to close at 23,163.10
Excessive intervention by the RBI could be counterproductive, particularly if other central banks allow their currencies to weaken, and could even affect rupee liquidity
With US President-elect Donald Trump threatening new tariffs and political chaos engulfing France, the European Union's second largest economy, the question ahead of the European Central Bank meeting Thursday is not whether it will cut interest rates, but by how much. Analysts see a quarter-point rate cut from the current ECB benchmark rate of 3.25% as the most likely option when the bank's rate-setting council meets at its skyscraper headquarters in Frankfurt. But the prospect of a half-point cut isn't out of the question for the bank and its President Christine Lagarde as new risks that emerged since the bank's last meeting on October 17 cast a shadow over an already tepid recovery from a post-pandemic stagnation. Trump's election victory on Nov. 5 heightened the prospect of a more protectionist U.S. trade policy, such as new or higher tariffs on imported goods, after he takes office on Jan. 20. That sends a cold chill through the business world in Europe, where exports are an ...
The ECB cut rates for the third time this year in October and made clear that further easing is coming given a weak economy and diminishing price pressures
But the pace of any deregulation will be determined by new regulators and key policymakers that Trump has yet to nominate, leaving the outlook highly uncertain
"The incoming information on inflation shows that the disinflationary process is well on track," the ECB said in a statement
The reason why the RBI till the August policy had its feet on the brakes is its assessment of inflation risks
Whatever happens, a sustained period of central bank activism, in contrast to the recent hiatus of higher-for-longer rates, is likely to take hold
Economists think the most she will do is keep the door open to another cut in October by saying that all meetings, including the next one, are 'live'
Inflation in the 20 European Union countries that use the euro fell sharply to 2.2 per cent in August, opening the door for the European Central Bank to cut interest rates as the ECB and the US Federal Reserve prepare to lower borrowing costs to support growth and jobs. The August figure was down from 2.6 per cent in July, according to figures on Friday from European Union statistics agency Eurostat. Energy prices fell in August by 3 per cent, helping lower the overall figure, while inflation fell to 2 per cent in Germany, the eurozone's largest economy. The monthly figure is now close to the ECB's target of 2 per cent, the level considered best for the economy. The central bank is charged with maintaining stable prices under the treaty that set up the European Union. Not all of the EU's 27 countries use the euro. Economists expect the ECB to cut its key rate by a quarter point from 3.75 per cent at its September 12 meeting, while the Fed is expected to cut rates from a 23-year high
With global markets lined up for quick-fire US rate cuts, the ECB signalled heightened concerns about volatile inflation, helping to sustain an upward shift for the euro
ECB came out with a balanced message following Thursday's meeting, arguing that corporate profits were absorbing some price pressures but risks remained