The European Central Bank should use bond purchases more sparingly in the future given costly side effects, Dutch central bank chief Klaas Knot said on Friday just as the ECB is starting a strategy review.
There is a persistent murmur in financial markets that the Trump administration may push through a grand bargain to weaken the overvalued U.S. dollar. But there are multiple problems here, not least Europe's likely unwillingness to play ball.
Euro zone inflation will be back at the European Central Bank's 2% target by the summer and interest rates could keep on falling to support the economy, French central bank chief Francois Villeroy de Galhau said just a day after the ECB's fourth straight rate cut.
On Bitcoin, Lagarde’s Czech counterpart Ales Michl yesterday said that his institution will assess whether to hold part of its foreign reserves in Bitcoin. In the US, President Trump has backed the idea of a strategic national Bitcoin reserve.
The European Central Bank is set to lower interest rates for a fifth meeting as inflation that’s nearing the 2% target lets officials further loosen the shackles on the economy.
During the press conference, ECB President Christine Lagarde indicated that the central bank's macro assessment had hardly changed from its December meeting. The ECB still sees the disinflationary process on track and expects a pick-up in demand, though it acknowledges the near-term weakness of the eurozone economy.
Despite still elevated domestic inflation, weak growth and inflation projected at target this year strengthen the case for further rate cuts.
ECB cuts the deposit rate by a quarter point to 2.75 per cent as expected and offers little shift in tone from December as it continues to move policy away from restrictive territory
Despite Bitcoin’s growing adoption, ECB President Christine Lagarde signaled Thursday that member states are unlikely to follow suit.
The central bank cut rates by a quarter point, as it rushes to brace a stagnant economy against President Trump’s threatened tariffs.
At 2.75% the ECB's deposit rate would be approaching the 1.75% to 2.50% range considered "neutral", neither fuelling nor dampening economic activity. But any Trump-induced volatility could intensify calls for the ECB to go below this rate and start stimulating growth.