This photo taken on July 27, 2023 shows the Euro sign in Frankfurt, Germany. The European Central Bank (ECB) raised its key interest rates by 25 basis points (bps) on Thursday to curb inflation. (Xinhua/Zhang Fan) This photo taken on July 27, 2023 shows the Euro sign in Frankfurt, G...
The article analyzes the failed impact of hike in interest rates on euro stabilisation done by European Central Bank (ECB). ECB is increasingly tightening the monetary policy reins. The justification offered by the it for its tighter stance, that the weakness of the euro, in particular, but ...
The European Central Bank finally moved against inflation yesterday. It raised interest rates for the first time in more than a decade, ending years of being in negative territory. ECB officials lifted their key deposit rate by 50 basis points instead of 25, which was being debated as recently...
If the market expects a rate cut but the ECB raises rates, a short-term long position on the Euro (1-2 hours) may be advantageous. More generally, relatively high interest rates will usually result in a stronger Euro and vice versa. Hike, cut or keep interest rates unchanged The Euro...
This raises a question of what will happen to relative pricing if things in Beijing deteriorate further. There's little doubt China still packs a huge punch for the global economy at large, with recent estimates showing it provides 35% of the world's gross manufacturing p...
More broadly, incoming data increasingly raises the question of what might drive the projected economic expansion, as none of the demand components (consumption, investment or exports) have yet shown the strengthening the ECB expects. Particular question marks surround ECB staff projections for consumpti...
It is conceivable, then, that sovereign yields may decouple from the interest rates charged to households and companies. Between the end of May and the end of October, the 10-year Italian government bond yield rose 140 basis points, to 6.19%. In the same period, the average rate on new ...
Goldman raises chance of ECB sovereign bond QE There is a 50 percent chance that the European Central Bank (ECB) will start to buy government bonds in the first quarter of 2015, according to Goldman Sachs' top strategists. "The emphasis that Draghi put on the urgency of expanding the balan...
The European Central Bank has raised interest rates by 0.75 percentage points to their highest level since 2009, pledging to continue increasing borrowing costs in the coming months to tackle record eurozone inflation despite a looming recession in the region. The increase, announced after theECBgover...
Italy is the eurozone country most susceptible to a debt crisis as the European Central Bank raises interest rates and buys fewer bonds in the coming months, economists say. Nine out of 10 economists in a Financial Times poll identifiedItalyas the eurozone country “most at risk of an uncorrel...