The inflation rate in countries overseen by the ECB jumped to 2.2% in November compared to 2.0% in the month prior and 1.7% in September. Across the entire European Union, the inflation rate went up from 2.3% in October to 2.5% in November.

According to ECB President Christine Lagarde, the central bank forecasts more fluctuations in the near future but fully expects to reach a stable 2% inflation rate over the medium term this year.

“We have made significant progress in 2024 in bringing down inflation and hopefully 2025 is the year when we are on target as expected and as planned in our strategy,” Lagarde said. “Of course we will continue our efforts to ensure that inflation stabilizes sustainably at that 2% medium-term target.”

Since June, the ECB officials have made four interest rate cuts, each 25 basis points. The ECB benchmark interest rate is currently set at 3.15%. Further rate cuts are expected this year, with experts predicting at least four more before June.

The post ECB Expects to Reach Its 2% Inflation Target in 2025 appeared first on theprimarymarket.com.

Euro Zone inflation in October came at 2% compared to 1.7% in the month prior and above the 1.9% estimated by economists. The surge was mainly caused by a jump in energy and food prices.

Excluding the volatile energy and food prices, inflation has maintained a steady pace of 2.7%, although economists expected a slight dip to 2.6%.

ECB President Christine Lagarde admitted that inflation is still not under control, and further climb is expected in the coming months. However, she also predicts that the target of 2% will be achieved on a stable basis in 2025.

“The objective is in sight, but I am not going to tell you that inflation is under control,” Lagarde said in an interview with French media outlet Le Monde. “We also know that inflation will rise in the coming months, simply because of base effects.”

The recent data had some economists and officials arguing for a moderate approach to further rate cuts. ECB has cut its interest rates three times since July, with another cut expected in December. Traders are currently betting that ECB’s rates will drop to 2% by the end of the next year from the current 3.25%.

The post Euro Zone Inflation Climbs Higher Than Expected, Could Lead to Moderate Rate Cuts Approach appeared first on theprimarymarket.com.

Set to be published on Thursday, the personal consumption expenditures price index is expected to rise 3.1% in October compared to the previous year. Core inflation is expected to rise by 3.5%. Euro-region data, also due Thursday, is seen to be rising 2.7%—the lowest rise since July 2021. The core measure is expected to slow down to 3.9%.

Despite expectations of a slowdown across the board, officials from both the Federal Reserve and the European Central Bank remain convinced that more evidence is needed in order to convince them that consumer prices are indeed under control.”We’re certainly not declaring victory,” European Central Bank President Christine Lagarde affirmed.

The post Inflation Gauges May Support End of U.S., Eurozone Rate Hikes appeared first on theprimarymarket.com.

The United States’ annual core metric excluding food and energy of the Fed’s preferred inflation measure fell below the 4% mark in August for the first time in nearly two years. The euro zone’s equivalent measure is expected to have slowed to 4.8% in September – a 12-month low.

Still, with crude prices heading towards $100 per barrel, the fight to curtail inflation is not over yet. The personal consumption expenditure price index is expected to pick up on a monthly basis to exhibit one of its highest levels this year when released on Friday. Headline euro zone inflation, however, is expected to have fallen to a two-year low of 4.5%.

The post Core Inflation Gauges in U.S. and Euro Zone on the Decline appeared first on theprimarymarket.com.

According to Eurostat, consumer inflation across the 20 countries sharing the euro currency was 0.5% month-on-month in August and 5.2% year-on-year. This is lower than the 5.3% year-on-year flash estimate reported on August 31.

Slovak ECB policymaker Peter Kazimir stated on Monday that the ECB’s decision last Thursday to continue raising its interest rates may have been the last for a while. Still, Kazimir warned that ECB policymakers have not ruled out the possibility of further interest rates in their entirety.

In August, expensive services added 2.41 percentage points to the final consumer inflation number, while food, alcohol, and tobacco added another 1.98 percentage points. Industrial goods added 1.19 points.

The post Euro Zone Inflation Revised Down By EU Statistics Office appeared first on theprimarymarket.com.

“Two percent is and will remain our inflation target,” Powell confirmed. “We are committed to achieving and sustaining a stance of monetary policy that is sufficiently restrictive to bring inflation down to that level over time.” As the United States made its way out of the pandemic, the country’s economic strain persisted amid global supply chain shortages and labor market shortages.

European Central Bank President Christine Lagarde is adamant that the ECB will not adjust its target either. “We are playing a game; there are rules; don’t change the rules of the game halfway through,” she explained, before adding that she does believe that the fight against inflation is more than halfway complete.

The post Federal Reserve, ECB Unwilling To Adjust Inflation Targets appeared first on theprimarymarket.com.

This comes after marginally cooler eurozone inflation data was released on Monday, along with optimistic eurozone economic growth figures. “Markets are showing signs of summer liquidity as investors take a much-deserved break,” Mohit Kumar, chief financial economist of Europe at Jefferies observed.

Following a sharp rise in European interest rates over the past 12 months, European Central Bank (ECB) President Christine Lagarde indicated a possibility that the central bank may pause its rate hikes in September, thereby providing some relief to European bonds.

Manufacturing activity in July contracted at its fastest pace since the COVID pandemic, as was expected by analysts. This data, in contrast with positive inflation and economic growth data, has created a cloudy economic outlook for the eurozone.

The post Eurozone Bonds Hold Steady Amid Uncertain Economic Landscape appeared first on theprimarymarket.com.

“The fight against inflation is not over yet — we need to make sure we bring it back below 2% in the long term,” Jordan told SonntagsZeitung in an interview. “At this point in time, we can’t exclude a further tightening of monetary policy.”

Since June 2022, the Swiss National Bank has raised borrowing costs by a total of 225 basis points. Now, the central bank is expected to raise interest rates once again on June 22.

Currently among the developed countries with the lowest interest rates, Switzerland’s central bank is looking to tighten its management of the inflation situation as it heads toward the top of the central bank’s target range.

Jordan explained that SNB has several important items on its agenda. This includes limiting the appreciation of the franc, reducing its balance sheet, and closely monitoring mortgages and the property market.

The post Fight Against Swiss Inflation Not Over, SNB Chief Declares appeared first on theprimarymarket.com.

Germany’s 10-year bond yield rose to 2.501%; its highest level since April 24. Italy’s 10-year bond yield increased by four basis points to 4.355%, rising to its highest level since March 9 when it stood at 4.376%. The gap between Germany’s and Italy’s 10-year bond yields rose to 186 bps.

Pooja Kumra, a European rates strategist at lender TD, observed that Wednesday’s bond yield increases were largely a reaction to the latest UK inflation data. “It’s a wake-up call for euro markets as well, that central banks are not done because inflation still needs to be tamed,” Kumra warned.

Aside from incoming UK inflation data, traders are also keeping an eye on the latest moves by the European Central Bank. Currently, they are betting on the ECB implementing another interest rate hike that will raise interest rates to 3.84%—the highest expected rate since April.

The post Euro Zone Bonds Hit One-Month High Amid Rising Bets on Rate Hikes appeared first on theprimarymarket.com.

German inflation edged lower as energy prices eased, however, it remained higher than forecasts, thereby keeping pressure on the European Central Bank to continue its tight fiscal policy that includes maintaining interest rate hikes.

Separate data indicated that Spain’s consumer prices rose at 3.3% year-on-year; the slowest pace since the 12-month period through August 2021. Slower than analysts’ expectations, this development also gave rise to improved European economic sentiment.

On Thursday, the euro gained 0.55% against the U.S. dollar to rise to $1.09035 – a trend that Mark Haefele, chief investment officer at UBS Global Wealth Management, expects to continue.

“We believe the main pillars of U.S. dollar strength last year — aggressive tightening by the Federal Reserve and a resilient U.S. economy — are unlikely to support the currency going forward,” Haefele observed.

The post Euro Gains Ground Against Dollar Following Release Of Inflation Data appeared first on theprimarymarket.com.

The inflation rate in countries overseen by the ECB jumped to 2.2% in November compared to 2.0% in the month prior and 1.7% in September. Across the entire European Union, the inflation rate went up from 2.3% in October to 2.5% in November.

According to ECB President Christine Lagarde, the central bank forecasts more fluctuations in the near future but fully expects to reach a stable 2% inflation rate over the medium term this year.

“We have made significant progress in 2024 in bringing down inflation and hopefully 2025 is the year when we are on target as expected and as planned in our strategy,” Lagarde said. “Of course we will continue our efforts to ensure that inflation stabilizes sustainably at that 2% medium-term target.”

Since June, the ECB officials have made four interest rate cuts, each 25 basis points. The ECB benchmark interest rate is currently set at 3.15%. Further rate cuts are expected this year, with experts predicting at least four more before June.

The post ECB Expects to Reach Its 2% Inflation Target in 2025 appeared first on theprimarymarket.com.

Euro Zone inflation in October came at 2% compared to 1.7% in the month prior and above the 1.9% estimated by economists. The surge was mainly caused by a jump in energy and food prices.

Excluding the volatile energy and food prices, inflation has maintained a steady pace of 2.7%, although economists expected a slight dip to 2.6%.

ECB President Christine Lagarde admitted that inflation is still not under control, and further climb is expected in the coming months. However, she also predicts that the target of 2% will be achieved on a stable basis in 2025.

“The objective is in sight, but I am not going to tell you that inflation is under control,” Lagarde said in an interview with French media outlet Le Monde. “We also know that inflation will rise in the coming months, simply because of base effects.”

The recent data had some economists and officials arguing for a moderate approach to further rate cuts. ECB has cut its interest rates three times since July, with another cut expected in December. Traders are currently betting that ECB’s rates will drop to 2% by the end of the next year from the current 3.25%.

The post Euro Zone Inflation Climbs Higher Than Expected, Could Lead to Moderate Rate Cuts Approach appeared first on theprimarymarket.com.

Set to be published on Thursday, the personal consumption expenditures price index is expected to rise 3.1% in October compared to the previous year. Core inflation is expected to rise by 3.5%. Euro-region data, also due Thursday, is seen to be rising 2.7%—the lowest rise since July 2021. The core measure is expected to slow down to 3.9%.

Despite expectations of a slowdown across the board, officials from both the Federal Reserve and the European Central Bank remain convinced that more evidence is needed in order to convince them that consumer prices are indeed under control.”We’re certainly not declaring victory,” European Central Bank President Christine Lagarde affirmed.

The post Inflation Gauges May Support End of U.S., Eurozone Rate Hikes appeared first on theprimarymarket.com.

The United States’ annual core metric excluding food and energy of the Fed’s preferred inflation measure fell below the 4% mark in August for the first time in nearly two years. The euro zone’s equivalent measure is expected to have slowed to 4.8% in September – a 12-month low.

Still, with crude prices heading towards $100 per barrel, the fight to curtail inflation is not over yet. The personal consumption expenditure price index is expected to pick up on a monthly basis to exhibit one of its highest levels this year when released on Friday. Headline euro zone inflation, however, is expected to have fallen to a two-year low of 4.5%.

The post Core Inflation Gauges in U.S. and Euro Zone on the Decline appeared first on theprimarymarket.com.

According to Eurostat, consumer inflation across the 20 countries sharing the euro currency was 0.5% month-on-month in August and 5.2% year-on-year. This is lower than the 5.3% year-on-year flash estimate reported on August 31.

Slovak ECB policymaker Peter Kazimir stated on Monday that the ECB’s decision last Thursday to continue raising its interest rates may have been the last for a while. Still, Kazimir warned that ECB policymakers have not ruled out the possibility of further interest rates in their entirety.

In August, expensive services added 2.41 percentage points to the final consumer inflation number, while food, alcohol, and tobacco added another 1.98 percentage points. Industrial goods added 1.19 points.

The post Euro Zone Inflation Revised Down By EU Statistics Office appeared first on theprimarymarket.com.

“Two percent is and will remain our inflation target,” Powell confirmed. “We are committed to achieving and sustaining a stance of monetary policy that is sufficiently restrictive to bring inflation down to that level over time.” As the United States made its way out of the pandemic, the country’s economic strain persisted amid global supply chain shortages and labor market shortages.

European Central Bank President Christine Lagarde is adamant that the ECB will not adjust its target either. “We are playing a game; there are rules; don’t change the rules of the game halfway through,” she explained, before adding that she does believe that the fight against inflation is more than halfway complete.

The post Federal Reserve, ECB Unwilling To Adjust Inflation Targets appeared first on theprimarymarket.com.

This comes after marginally cooler eurozone inflation data was released on Monday, along with optimistic eurozone economic growth figures. “Markets are showing signs of summer liquidity as investors take a much-deserved break,” Mohit Kumar, chief financial economist of Europe at Jefferies observed.

Following a sharp rise in European interest rates over the past 12 months, European Central Bank (ECB) President Christine Lagarde indicated a possibility that the central bank may pause its rate hikes in September, thereby providing some relief to European bonds.

Manufacturing activity in July contracted at its fastest pace since the COVID pandemic, as was expected by analysts. This data, in contrast with positive inflation and economic growth data, has created a cloudy economic outlook for the eurozone.

The post Eurozone Bonds Hold Steady Amid Uncertain Economic Landscape appeared first on theprimarymarket.com.

“The fight against inflation is not over yet — we need to make sure we bring it back below 2% in the long term,” Jordan told SonntagsZeitung in an interview. “At this point in time, we can’t exclude a further tightening of monetary policy.”

Since June 2022, the Swiss National Bank has raised borrowing costs by a total of 225 basis points. Now, the central bank is expected to raise interest rates once again on June 22.

Currently among the developed countries with the lowest interest rates, Switzerland’s central bank is looking to tighten its management of the inflation situation as it heads toward the top of the central bank’s target range.

Jordan explained that SNB has several important items on its agenda. This includes limiting the appreciation of the franc, reducing its balance sheet, and closely monitoring mortgages and the property market.

The post Fight Against Swiss Inflation Not Over, SNB Chief Declares appeared first on theprimarymarket.com.

Germany’s 10-year bond yield rose to 2.501%; its highest level since April 24. Italy’s 10-year bond yield increased by four basis points to 4.355%, rising to its highest level since March 9 when it stood at 4.376%. The gap between Germany’s and Italy’s 10-year bond yields rose to 186 bps.

Pooja Kumra, a European rates strategist at lender TD, observed that Wednesday’s bond yield increases were largely a reaction to the latest UK inflation data. “It’s a wake-up call for euro markets as well, that central banks are not done because inflation still needs to be tamed,” Kumra warned.

Aside from incoming UK inflation data, traders are also keeping an eye on the latest moves by the European Central Bank. Currently, they are betting on the ECB implementing another interest rate hike that will raise interest rates to 3.84%—the highest expected rate since April.

The post Euro Zone Bonds Hit One-Month High Amid Rising Bets on Rate Hikes appeared first on theprimarymarket.com.

German inflation edged lower as energy prices eased, however, it remained higher than forecasts, thereby keeping pressure on the European Central Bank to continue its tight fiscal policy that includes maintaining interest rate hikes.

Separate data indicated that Spain’s consumer prices rose at 3.3% year-on-year; the slowest pace since the 12-month period through August 2021. Slower than analysts’ expectations, this development also gave rise to improved European economic sentiment.

On Thursday, the euro gained 0.55% against the U.S. dollar to rise to $1.09035 – a trend that Mark Haefele, chief investment officer at UBS Global Wealth Management, expects to continue.

“We believe the main pillars of U.S. dollar strength last year — aggressive tightening by the Federal Reserve and a resilient U.S. economy — are unlikely to support the currency going forward,” Haefele observed.

The post Euro Gains Ground Against Dollar Following Release Of Inflation Data appeared first on theprimarymarket.com.