At its last policy meeting in September, the ECB raised its interest rates for the 10th straight month. This saw the deposit rate rise to a record 4%. According the Lagarde, such interest rate levels need to be maintained in order to lower inflation to the ECB’s 2% target.

While the ECB’s tight fiscal policy has slowed economic growth in the region, the ECB president maintained that bringing on a recession was not her intention. Still, she was quick to point out that this is a worldwide trend, adding “That’s why the International Monetary Fund has revised its forecasts lower in the whole world, except for the US.” The IMF is set to release its latest economic projections on Tuesday.

The post ECB President Adamant That Policy Will Lower Inflation appeared first on theprimarymarket.com.

The U.S. Federal Reserve announced a 25 basis point hike to a target range of 5% to 5.25%. This is the 10th consecutive interest rate increase by the Fed since March 2022, when the central bank began its battle against rising inflation. The current interest rate range is the highest since November 2007.

London’s FTSE 100 retreated by 0.46% to 7,753.03 during the morning session, while the CAC 40 fell by 0.72% to 7,350.16 points. Germany’s DAX declined by 0.73% to 15,699.62.

Analysts largely expect the European Central Bank to hike interest rates by 25 basis points, following the footsteps of the Federal Reserve. There is some speculation that the hike could be higher.

“The European Central Bank is expected to raise interest rates by 25 basis points, but there might be potential for a 50 basis point move. This would represent a hawkish surprise for Euro buyers, Jameel Ahmad, chief analyst at CompareBroker.io, commented.

The post European Stocks Edge Lower Ahead Of ECB Decision appeared first on theprimarymarket.com.

Yannis Stournaras, who is a member of ECB’s Governing Council, said in a recent interview that the bank’s interest rate “reached close to the ceiling, close to the maximum increase.” He called for a cautious approach that would take economic data in consideration before making a decision.

“Close — I didn’t say we have reached it yet, but we are converging toward it,” Stournaras, who also serves as Governor of the Bank of Greece, added via Bloomberg.

Analysts predict that ECB’s rates will reach their peak in the summer before the European Union’s central bank reverses its course and starts bringing them down.

Inflation in Eurozone reached 10% in late 2022 before starting a steady decrease. It was 8.5% in February before coming down to 6.9 % in March 2023. There is an expectation that the mark will drop to 3% by the end of the year and continue to be on a downward trajectory in 2024.

The post ECB’s Rate “Close To the Maximum Increase” Says Governing Council Member appeared first on theprimarymarket.com.

ECB hiked the interest rates by half a percentage point in March and reiterated its intention to continue with hikes in the future if inflation continues to run at the current level.

“I believe that in the end, the (European) Central Bank will take a balanced approach, probably raising rates by more than what ‘doves’ would like, but by less than what ‘hawks’ would,” Orcel said in last week’s interview with Italian media outlet Il Messaggero.

Orcel also added that he expects ECB’s deposit rates to reach their peak in the summer.

After the latest hike, ECB’s interest rate is currently at 3.5%. At the same time, the Eurozone central bank’s deposit has reached 3%.

Many believed that ECB would steer clear of interest rate hikes considering the banking crisis in the United States. However, ECB’s president Christine Lagarde said in March that the move was necessary in order to meet to the goal of bringing eurozone inflation back to 2% by 2025.

The post UniCredit CEO Predicts That ECB Will Have “Balanced Approach” on Interest Rates Hikes appeared first on theprimarymarket.com.

At its last policy meeting in September, the ECB raised its interest rates for the 10th straight month. This saw the deposit rate rise to a record 4%. According the Lagarde, such interest rate levels need to be maintained in order to lower inflation to the ECB’s 2% target.

While the ECB’s tight fiscal policy has slowed economic growth in the region, the ECB president maintained that bringing on a recession was not her intention. Still, she was quick to point out that this is a worldwide trend, adding “That’s why the International Monetary Fund has revised its forecasts lower in the whole world, except for the US.” The IMF is set to release its latest economic projections on Tuesday.

The post ECB President Adamant That Policy Will Lower Inflation appeared first on theprimarymarket.com.

The U.S. Federal Reserve announced a 25 basis point hike to a target range of 5% to 5.25%. This is the 10th consecutive interest rate increase by the Fed since March 2022, when the central bank began its battle against rising inflation. The current interest rate range is the highest since November 2007.

London’s FTSE 100 retreated by 0.46% to 7,753.03 during the morning session, while the CAC 40 fell by 0.72% to 7,350.16 points. Germany’s DAX declined by 0.73% to 15,699.62.

Analysts largely expect the European Central Bank to hike interest rates by 25 basis points, following the footsteps of the Federal Reserve. There is some speculation that the hike could be higher.

“The European Central Bank is expected to raise interest rates by 25 basis points, but there might be potential for a 50 basis point move. This would represent a hawkish surprise for Euro buyers, Jameel Ahmad, chief analyst at CompareBroker.io, commented.

The post European Stocks Edge Lower Ahead Of ECB Decision appeared first on theprimarymarket.com.

Yannis Stournaras, who is a member of ECB’s Governing Council, said in a recent interview that the bank’s interest rate “reached close to the ceiling, close to the maximum increase.” He called for a cautious approach that would take economic data in consideration before making a decision.

“Close — I didn’t say we have reached it yet, but we are converging toward it,” Stournaras, who also serves as Governor of the Bank of Greece, added via Bloomberg.

Analysts predict that ECB’s rates will reach their peak in the summer before the European Union’s central bank reverses its course and starts bringing them down.

Inflation in Eurozone reached 10% in late 2022 before starting a steady decrease. It was 8.5% in February before coming down to 6.9 % in March 2023. There is an expectation that the mark will drop to 3% by the end of the year and continue to be on a downward trajectory in 2024.

The post ECB’s Rate “Close To the Maximum Increase” Says Governing Council Member appeared first on theprimarymarket.com.

ECB hiked the interest rates by half a percentage point in March and reiterated its intention to continue with hikes in the future if inflation continues to run at the current level.

“I believe that in the end, the (European) Central Bank will take a balanced approach, probably raising rates by more than what ‘doves’ would like, but by less than what ‘hawks’ would,” Orcel said in last week’s interview with Italian media outlet Il Messaggero.

Orcel also added that he expects ECB’s deposit rates to reach their peak in the summer.

After the latest hike, ECB’s interest rate is currently at 3.5%. At the same time, the Eurozone central bank’s deposit has reached 3%.

Many believed that ECB would steer clear of interest rate hikes considering the banking crisis in the United States. However, ECB’s president Christine Lagarde said in March that the move was necessary in order to meet to the goal of bringing eurozone inflation back to 2% by 2025.

The post UniCredit CEO Predicts That ECB Will Have “Balanced Approach” on Interest Rates Hikes appeared first on theprimarymarket.com.