ECB Might Eventually Cut Interest Rates Into Accommodative Territory -- Market Talk
Eurozone Inflation, Growth Data Offers ECB a Chance to Get to Neutral Rate Quicker -- Market Talk
ECB's Interest-Rate Cuts Could Disappoint Market -- Interview
Eurozone's Labor Market Defies Economic Warnings -- Market Talk
Eurozone Labor Market Stays Resilient Despite Weak Economy -- Update
Eurozone Unemployment Rate Holds Steady at 6.2% in January
Eurozone Labor Market Stays Resilient Despite Weak Economy
ECB Expected to Cut Rates by 25 Bps This Week, Two Further Cuts to Follow in 2025 -- Market Talk
Italy's Jobless Rate Dips to 6.3% With 145,000 New Jobs in January
Eurozone Government Bond Issuance to Slow in March, Net Supply Turn Negative -- Market Talk
The labyrinth of the European Central Bank's policies: the triangle game of interest rate cuts, inflation, and stimulus.
The European Central Bank may once again cut interest rates this Thursday (March 6), but there is a concern within that further easing could unintentionally lead the bank into a stimulating policy territory while inflation is not yet fully eliminated. This concern reflects the difficult choices faced by the central bank in the current complex economic and political environment. 1. The game between interest rate cuts and inflation Almost no one doubts that the European Central Bank will cut interest rates again this week, but this decision is not without controversy. Some officials within the bank are worried that further easing before inflation is fully eliminated may shift the policy from "restrictive" to "stimulative". This concern makes it challenging for central bank officials to formulate policy.
ECB's Hawks Gain Altitude Over Doves as Softer Inflation Hopes Falter -- Market Talk
ECB to Deliver Sequential Rate Cuts Until July, Says Vanguard -- Market Talk
European Equities Close Higher in Monday Trading; Euro Area Inflation Declines in February
Daiwa Expects ECB to Cut Rates, Slow Down Easing Ahead
ECB Rate Cut This Week Looks Like a Done Deal, Pace of Further Easing Is Open -- Market Talk
Euro Could Rise If ECB Signals Pause in Rate Cuts, Tariffs Pose a Risk -- Market Talk
Eurozone Manufacturing PMI Hits Two-year High in February
Opening the "green light" for interest rate cuts? The eurozone's February CPI increased by 2.4% year-on-year, with a significant decline in service sector inflation.
Analysis suggests that although the overall inflation data is slightly higher than expected, the decline in service sector inflation has opened a "green light" for the European Central Bank to further lower interest rates. Since June of last year, the ECB has cut rates five times in a row, and the market widely expects a further reduction of 25 basis points this week, with attention on whether the ECB will continue to describe its stance as "restrictive" this week.
Eurozone Consumers Still Aren't Splashing Out, Keeping Inflation Lower -- Market Talk