ECB

ECB’s Nagel says it’s ‘too early’ to call for more rate hikes

Bundesbank President Joachim Nagel said it is "too early" to commit to further interest rate increases, even as he warned that the energy price shock from the Middle East conflict remains embedded in the euro zone economy and will keep…

Eurozone inflation drops to 2.8% in June, beating forecasts

Consumer prices across the euro zone rose at a slower pace than expected in June, with annual inflation falling to 2.8% from 3.2% in May, according to a flash estimate published on Tuesday by Eurostat Euronext N.V.. The reading came…

ECB debates doubling banks’ minimum reserve ratio to 2%

The European Central Bank is considering doubling the minimum reserves that euro-area banks must hold in unremunerated accounts, a move that would reduce the central bank's interest bill while preserving its monetary policy stance, according to a Reuters exclusive report…

ECB’s Demarco says bank should not rush next rate hike

A divide has emerged within the European Central Bank's Governing Council over whether to pursue further interest rate increases, as a rapid decline in oil prices following an interim peace agreement in the Middle East reshapes the inflation outlook for…

ECB officials signal July rate pause as eurozone inflation cools sharply

European Central Bank policymakers gathering at the annual Sintra forum have largely dampened expectations for a follow-up interest rate increase at their July 23 meeting, as fresh inflation data from the eurozone's largest economies showed a sharper-than-expected retreat in price…

Companies using AI most are adding junior workers, not cutting them

Companies making the deepest investments in artificial intelligence are expanding their junior workforces rather than shrinking them, according to recent labor market data and employer surveys that challenge assumptions about mass technological unemployment. The findings arrive as OpenAI Chief Economist…

Lagarde declares end of ECB forward guidance era at Sintra forum

European Central Bank President Christine Lagarde used the opening of the ECB's annual forum in Sintra, Portugal on Monday to defend the bank's June 11 rate increase and lay out a stripped-down approach to monetary policy that replaces forward guidance…

ECB warns inflation shock ‘not over’ despite oil retreat

European Central Bank President Christine Lagarde on Monday defended the institution's June 11 rate hike, rejecting the characterization of it as a mere "insurance" move, while Bundesbank President Joachim Nagel warned on Tuesday that inflation will remain "significantly above" the…

ECB’s Wunsch says case for another rate hike has weakened

European Central Bank Governing Council member Pierre Wunsch said on Tuesday that the case for a second interest rate increase has diminished, marking a shift in tone from one of the ECB's more hawkish voices just weeks after the bank…

Lagarde says ECB’s June rate hike was data-driven, not precautionary

ECB President Christine Lagarde on Monday pushed back against characterizations of the bank's June rate increase as a pre-emptive move, arguing that the euro zone's improved economic resilience and the ECB's upgraded analytical tools gave policymakers confidence to act on…

Lagarde says eurozone resilience gives ECB room on rates

ECB President Christine Lagarde used the opening of the central bank's annual forum in Sintra, Portugal, on Monday to argue that the eurozone's growing economic resilience gives policymakers greater flexibility to adjust interest rates without triggering financial stress, according to…

ING warns eurozone heatwaves now pose structural economic threat

As Europe endures another punishing summer — with more than 1,300 excess deaths reported since June 21 and temperature records shattered across the continent — ING is sounding the alarm that recurring heatwaves have crossed from a meteorological nuisance into…

Euro zone corporate lending hits 3-year high, ECB data shows

Bank lending to euro zone companies grew at its fastest pace in three years in May, according to European Central Bank data released Monday, a sign that the currency bloc's economy is absorbing higher borrowing costs while credit demand strengthens…

ECB’s Kazaks says no rush for more rate hikes as risks ease

European Central Bank Governing Council member Martins Kazaks said on Sunday that there is currently no need for multiple rate hikes "in a rushed way," noting that the probability of negative economic scenarios in the eurozone has "fallen massively."

ECB warns heatwaves and droughts threaten EU growth

A working paper published by the European Central Bank warns that compounding heatwaves and droughts are increasingly threatening economic growth across the EU, with agriculture facing the steepest losses — annual growth could fall by between 1.9 and 7.6 percentage…

Euro-area consumers sharply cut short-term inflation expectations in May

Euro-area consumers lowered their inflation expectations for the year ahead by half a percentage point in May, according to the European Central Bank's Consumer Expectations Survey released on Thursday, providing a rare piece of encouraging news for policymakers grappling with…

Falling oil prices push economists to predict ECB’s June hike was its last

The sharp decline in crude oil prices following the reopening of the Strait of Hormuz has prompted economists to scale back expectations for further European Central Bank rate increases, with several major forecasters now predicting the ECB's June hike will…

Euro drops to lowest level since mid-2025 as US inflation hits 4.1%

The euro slid to its weakest point against the US dollar in over a year on Wednesday, touching 1.1329 before stabilizing near 1.1342 on Thursday after fresh inflation data confirmed the Federal Reserve's hawkish stance remains warranted. The EUR/USD pair…

ECB raises Iran war’s estimated drag on eurozone growth to 0.4 percentage points

The European Central Bank warned on Wednesday that the war in Iran and the resulting disruption to energy supplies through the Strait of Hormuz will reduce eurozone real GDP growth by approximately 0.4 percentage points this year, according to a…

Brent crude hits lowest since before Iran war, reshaping ECB outlook

Crude oil prices tumbled to their lowest levels since before the Iran war on Wednesday, as a US sanctions waiver and the reopening of the Strait of Hormuz erased the geopolitical risk premium that had kept energy markets elevated for…

EU Parliament committee backs digital euro bill, eyes 2029 launch

The European Parliament's Economic and Monetary Affairs Committee on Tuesday approved draft legislation for a digital euro, clearing a major hurdle for the European Central Bank's plan to launch the currency by 2029 as the bloc moves to reduce its…

Treasuries gain as tech rout and falling oil fuel flight to safety

U.S. Treasury prices rose on Tuesday as a sweeping global equity selloff and falling oil prices drove investors toward the safety of government bonds, tempering expectations for aggressive Federal Reserve tightening. Meanwhile, euro zone government bond yields continued to drift…

Euro slides as US-Iran sanctions waiver and cautious Lagarde weigh on currency

The euro weakened against the U.S. dollar on Tuesday as diplomatic breakthroughs between the United States and Iran eased geopolitical tensions and pushed oil prices lower, while European Central Bank President Christine Lagarde's measured tone on monetary policy weighed further…

Flash PMIs show lingering cost pressures despite US-Iran peace deal

A week after the United States and Iran signed a memorandum of understanding to end hostilities, businesses across Europe and Asia are reporting tentative relief from war-driven cost pressures — though persistent inflation and fresh disruptions to the Strait of…

ECB’s Lane warns inflation could stay above 2% ‘for quite some time’

European Central Bank President Christine Lagarde told the European Parliament on Monday that the euro zone is navigating a "middle scenario" on inflation — one that demands measured policy adjustment but not an aggressive tightening campaign. Her remarks came less…

Lagarde calls capital markets union key to euro’s global reserve status

European Central Bank President Christine Lagarde told lawmakers in Brussels on Monday that the euro will not become a global reserve currency "overnight," calling the completion of the capital markets union the single most important step toward strengthening the single…

Lagarde says ECB inflation shock warrants measured response

European Central Bank President Christine Lagarde told the European Parliament's Committee on Economic and Monetary Affairs on Monday that the euro area's inflation overshoot calls for a careful policy adjustment rather than an aggressive tightening cycle, arguing that longer-term price…

Euro zone yields dip as U.S.-Iran talks ease pressure on ECB

European government bond yields dipped on Monday as signs of progress in weekend peace talks between the United States and Iran eased concerns that diplomatic efforts to end the Middle East conflict were unraveling. But with ECB President Christine Lagarde…

ECB’s Wunsch says July rate hike possible if inflation persists

European Central Bank policymaker Pierre Wunsch said the ECB could raise interest rates again as early as July if inflation in the euro zone continues to spread beyond energy prices, even as the recent U.S.-Iran peace deal has eased some…

ECB’s Lane calls rate hike a ‘delta response’ to inflation

European Central Bank Chief Economist Philip Lane defended the institution's recent interest rate increase on Friday at the Natixis International SSA Conference in Paris, characterizing the energy-driven inflation episode as a "mid-sized shock" that warranted tightening monetary policy.