European Central Bank

Inflation scars risk quickly lifting expectations; ECB must be ready to act: policymaker

Surging energy costs prompted by the Iran war have already pushed inflation well above the ECB’s 2% target

As oil and gas markets push higher and sentiment indicators plunge, Italy is among the countries weighing cuts to their official growth projections.

Europe’s economy is starting to feel pain from Trump’s Iran war

The conflict prompts countries to cut their output forecasts and brace for an energy-driven upswing in prices

Tehran, Iran on Mar 22. Iran has determined that it faces an existential threat and seems to have decided that its best course of action is to inflict as much pain as possible on global financial markets.

Recession risks rise for global economy

Recent monetary policy decisions by key central banks signal a rapidly changing outlook

Donald Trump has flip-flopped from saying the war could end “very soon” to claiming the US has “plenty of time” as it pounds targets from the skies.

World’s top central banks are about to confront fresh inflation threat as war jolts oil

Much hinges on how long the conflict lasts, something markets are struggling to gauge

ECB officials recognise that the progress they have made to restore price stability after eurozone inflation shot past 10 per cent four years ago is in jeopardy.

ECB rate hike potentially closer than thought on Iran war: Governing Council member

Investors bet there is a 60% chance of an increase by June, with a 35% chance of another by end-2026

ECB president Christine Lagarde has stressed that restructuring the bloc’s “business model” would require robust financial support.
THE BOTTOM LINE

Europe’s ‘limited responsibility’ model must go

ECB’s Christine Lagarde explained what Europe must do to secure its prosperity and sovereignty. But will European leaders heed the call?

US President Donald Trump’s push to make crypto more mainstream has raised fears that US dollar-backed stablecoins could gain a foothold in Europe.

Stablecoins could pose major risks to monetary policy, ECB paper warns

European lenders are developing a regulated euro-based instrument

ECB President Christine Lagarde says the World Economic Forum is “one of the many options” she is considering once she leaves the central bank.

Christine Lagarde intends to complete her term at ECB, she tells WSJ 

The chief reassures policymakers she is still focusing on leading Europe’s most important financial institution

Christine Lagarde’s non-renewable term at the ECB runs until Oct 31, 2027.

ECB President Christine Lagarde expected to leave bank before term expires next year: report

The FT report comes only a week after Bank of France governor Francois Villeroy de Galhau said that he would step down in June this year

For now, Lagarde is likely to repeat that the ECB has no exchange rate target and that the euro’s strength is merely one factor that impacts inflation.

Choppy markets threaten ECB’s ‘good place’ but rates still firmly on hold

The euro zone’s central bank has been on hold since ending a year-long run of rate cuts in June