ECB

ECB Economic Bulletin: From economic to political concerns!

On Wednesday June 21st, the European Central Bank (ECB) released its regular Economic Bulletin in which the Frankfurt-based central bank said fresh concerns have arisen as old ones fade. Indeed, risks to global growth appeared to have diminished, notably with financial markets that are so far accommodating to the Federal Reserves (Fed) tightening without problems. [...]

By |June 22nd, 2017|Categories: Analyst's Insight|Tags: , , , , , , , |

Investment in the Eurozone to move from a cyclical to a sustainable recovery: It’s now or never!

What is missing in the Old Continent to move from a cyclical recovery to a strong and sustainable recovery? Investment! Even if the answer seems obvious, investment is still lacking in the Eurozone. Yet, from a cyclical point of view, all the planets seem to be aligned to restart investment. Indeed, according to Eurostat in [...]

By |April 6th, 2017|Categories: Analyst's Insight|Tags: , , , , , , , |

ECB: towards less monetary easing? Not yet!

On Thursday March 9th, the ECB has left interest rates on hold and pushes on with QE, despite a strong acceleration in the Eurozone headline inflation (+2% in February). This acceleration is largely due to the recent rise in oil prices and on foodstuffs, the more volatile components of the headline inflation. As Mario Draghi [...]

By |March 9th, 2017|Categories: Analyst's Insight|Tags: , , , , |

ECB: the European firefighter?

On December 8, 2016, Mario Draghi, the European Central Bank (ECB) president, announced an extension of the ECB QE that should have ended at the end of March 2017. Indeed, the ECB expanded its QE to reached EUR 2.28 trillion by the end of 2017 – twice as much as what was initially contemplated when the ECB [...]

By |December 20th, 2016|Categories: Analyst's Insight|Tags: , , , , , |

ECB: the European firefighter?

On December 8, 2016, Mario Draghi, the European Central Bank (ECB) president, announced an extension of the ECB QE that should have ended at the end of March 2017. Indeed, the ECB expanded its QE to reached EUR 2.28 trillion by the end of 2017 – twice as much as what was initially contemplated when the ECB [...]

By |December 8th, 2016|Categories: Analyst's Insight|Tags: , , , , , |

Even outside the EU, the UK is compelling the ECB to act!

On Thursday July 7th, the French government issued nearly EUR 10 billion of debt with a maturity of 10 years. The yield of this auction reached an all-time low at 0.16%. On the secondary market, the 10-year yield fall even more to 0.14% (see chart below) and the 20-year is trading at about 0.73%. The [...]

By |July 8th, 2016|Categories: Analyst's Insight|Tags: , , , , , , , , |

Can you hear the helicopter money? It’s already there!

As the unconventional monetary policy tools lose their effectiveness to fight deflationary pressures and economic slowdown – quantitative easing or QE and negative interest rates policies to name a few – there is wide speculation about the next unconventional monetary policy tools that advanced economies’ central banks could use. In recent months, the hypothesis of [...]

By |May 11th, 2016|Categories: Analyst's Insight|Tags: , , , , , , |

ECB QE: The sky is the limit but what kind of sky, Mr. Draghi?

On Thursday April 21st, the European Central Bank (ECB) held its monetary policy committee and European investors did not expect anything special from this committee. Indeed, there was no big news. The main refinancing rate and the deposit rate remained unchanged at respectively 0% and -0.4%. The amount of bonds purchased by the ECB under [...]

By |April 21st, 2016|Categories: Analyst's Insight|Tags: , , , , |

The ECB, Democracy & Neutrality

(by Michel Lepetit)
European Central Bank (ECB) President Mario Draghi, followed by his Japanese counterpart Haruhiko Kuroda, has said there are no limits to his monetary interventions (“Within our mandate we have no limits on the choice of policy tools or the way to employ it (…)”).
 Since financial deregulation in the 1980s, central banks have consistently [...]

By |April 11th, 2016|Categories: Analyst's Insight|Tags: , , , , |