LAGARDE
Inflation is down in Europe. But the European Central Bank is in no hurry to make more rate cuts
In June, inflation in the eurozone fell slightly to 2.5%, above the European Central Bank's target. The ECB remains cautious about adding more rate cuts after a recent reduction. Inflation is expected to remain between 2% and 3%. ECB President Lagarde emphasizes the need to control inflation before further rate cuts. The economy faces challenges with high rates impacting credit-sensitive sectors like real estate.
Asian stocks fluctuate as traders weigh Trump win
Asian stocks fluctuated amid US election uncertainty. Markets in Japan, Australia, and South Korea remained stable. Yields on 10-year Treasuries held steady. Wall Street edged higher with tech megacaps leading the rally. The Democratic National Committee considers early Biden nomination. Supreme Court ruling on Trump's immunity affects the election. Fiscal deficit policies are investors' focus.
Global rate-cut juggernaut is struggling to start
Central banks cagey about joining the global interest-rate cutting cycle may reveal themselves this week with a quartet of decisions in advanced economies.
European shares close shy of record after ECB delivers first rate-cut in five years
In new forecasts, the ECB said it expected inflation to average 2.2% in 2025 - up from a previous estimate of 2.0% and meaning it was now seen holding above the central bank's 2% target well into next year. ECB President Christine Lagarde said that only one ECB Governing Council member had opposed the bank's decision to cut interest rates earlier in the day.
ECB's Lagarde says only one governor opposed rate cut decision
"Was it a unanimous decision? Yes, but for one governor," Lagarde told reporters at a post-meeting news conference. "I leave it to your sagacity to identify who it is."
World stocks at record high after cautious ECB rate cut
It was enough to snip the pan-European STOXX 600's gains back to 0.6%, while the euro inched up to almost $1.0890 against the dollar and government bond yields - which reflect borrowing costs and move inversely to price - ticked up too.
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ECB jumps ahead of Fed, cuts interest rate by 25 bps for first time since 2019
ECB raises inflation forecast for 2024, 2025. Analysts say the quarter-point cut on Thursday would likely not usher in a swift series of further cuts as the bank waits to make sure inflation is under control while easing credit to help the economy. While inflation at an annual rate of 2.6% in May is well down from the peak of 10.6% in October 2022, the decline has slowed in recent months and inflation even ticked up slighly from 2.4% in April.
European stocks at record on tech and ECB bets
The pan-European STOXX 600 benchmark rose by 0.7%, with the technology subindex surging 2.6%, driven by significant gains from Wall Street's tech giants.
European Central Bank set to cut rates for the first time since 2019 even as inflation fight continues
All 82 economists polled by Reuters expected the ECB to trim its deposit rate to 3.75% on Thursday from a record 4.0%, in what would be its first cut since 2019. ECB policymakers have clearly telegraphed their intention to lower borrowing costs after seeing inflation in the 20 countries that share the euro fall from more than 10% in late 2022 to just above their 2% target in recent months.
London stocks edge up in anticipation of ECB rate cut
British equities rose on ECB rate cut expectations, with Antofagasta and John Wood Group seeing gains. Investors await Christine Lagarde's remarks and Bank of England's upcoming meeting.
Asia shares rally on hopes for more rate cuts this week
Asian share markets rose on Monday as investors anticipated rate cuts by the European Central Bank and possibly the Bank of Canada. Sticky inflation may prolong the easing process.
ECB cannot commit to rate path even after first cut, says Lagarde
The European Central Bank cannot commit to a pre-set number of interest rate cuts even after it starts reducing borrowing costs as the pace of cuts will depend on incoming data, ECB President Christine Lagarde said on Wednesday.
ECB rate cut likely in 'spring': French central bank chief
Francois Villeroy de Galhau and other ECB governing council members plan to cut interest rates in spring to meet the inflation target and stimulate the eurozone economy. ECB president Christine Lagarde emphasized the need for more evidence on inflation before deciding in June.
Europe's inflation is way down. But hope is gone for a quick interest rate cut
Europe's energy crisis, sparked by Russia's actions in Ukraine, has seen some relief with a decrease in inflation. However, the European Central Bank (ECB) is not expected to cut interest rates at its upcoming meeting. ECB President Christine Lagarde is likely to stress the need for more evidence that inflation is decreasing toward the bank's 2% target.
US dollar up slightly after GDP data; euro falls after ECB, Lagarde comments
The euro, on the other hand, fell against the dollar, after mixed comments from European Central Bank President Christine Lagarde. She said it was "premature to discuss rate cuts" for the euro zone economy, but noted that the risks to economic growth remain "tilted to the downside."
Shipping CEOs see no short-term end to Red Sea disruptions
Disruptions to supply chains that began during the pandemic were partly behind an initial bout of inflation that occurred before energy prices spiked in the wake of the Russian invasion of Ukraine.
When IMF's Lagarde gave thumbs up to RBI’s FX intervention
"A few directors explicitly supported the authorities’ view that exchange rate stability reflects improvements in India’s external position and that foreign exchange interventions have been used to avoid excessive volatility not warranted by fundamentals," said the IMF report.
ECB leaves rates unchanged, starts pulling plug on bond buys
The ECB raised interest rates to a record high earlier this year but unexpectedly benign inflation data over the past few months has all but ruled out further policy tightening, shifting the debate to how fast it will reverse course.
Inflation drops to a two-year low in Europe. It offers hope, but higher oil prices loom
Economic growth has stagnated to just above zero in the first six months of the year, with some indicators pointing to a downturn in the current July-to-September quarter. This burst of inflation was set off as the global economy rebounded from the COVID-19 pandemic, leading to shortages of parts and raw materials. It got worse when Russian invaded Ukraine, sending energy prices soaring as Moscow cut off most natural gas to Europe.
Interest rates will stay high 'as long as necessary', the European Central Bank's head Christine Lagarde says
Christine Lagarde said “strong spending on holidays and travel” and increasing wages were slowing the decline in price levels even as the economy stays sluggish. Annual inflation in the eurozone eased only slightly from 5.2% in July to 5.3% in August.
ECB to tackle excess liquidity in next stage of inflation fight -sources
The central bank for the 20 countries that use the euro has already raised interest rates 10 times to record levels but inflation remains well above its 2% target. With rates likely on hold at least until December, policymakers are now starting to shift their focus to the cash that they injected into the banking system over a decade of bond purchases.
ECB hikes, cuts growth outlook; US core inflation remains bit firmer
While the European Central Bank hiked interest rates this week and cut growth estimates, the core inflation in the US stood a bit firmer than expected.
FOMC meet next week to trigger volatility in gold
The US CPI inflation data (August) showed that the US core CPI inflation m-o-m rose 0.30% versus the forecast of 0.20%, thus registering the first increase in six months, whereas the headline CPI inflation y-o-y was up 3.70% as against the forecast of 3.60%
Lagarde’s policy silence keeps ECB interest rate debate raging
Consumer-price numbers will set the scene for one of the most suspenseful decisions since ECB rate hikes began more than a year ago, as officials ask if additional monetary tightening is an imperative, or whether a souring economic outlook is bleak enough to warrant a pause.
Fed Chair's message is clear: The fight against inflation isn't over
Powell, who was speaking Friday at the Federal Reserve Bank of Kansas City's annual Jackson Hole conference in Wyoming, said the Fed would "proceed carefully" as it decided whether to make further policy adjustments after a year and a half in which it had pushed interest rates up sharply.
European Central Bank raises interest rate, will it help Eurozone economy to stabilize?
The European Central Bank or ECB has raised the rate of the economy, but economists feel that the inflation rate in the 20-member economic group may go further up. Know the reasons.
European Central Bank raises rates by 25 bps to highest level since May 2001
The central bank's ninth straight increase took the closely-watched deposit rate to 3.75 percent -- a level last seen in May 2001 and equal to its previous record high.
Asia shares on tenterhooks for Fed, ECB and BOJ
Markets are fully priced for quarter point hikes from the Federal Reserve and European Central Bank, so the focus will be on what Fed Chair Jerome Powell and ECB President Christine Lagarde say about the future.
European shares open flat as rate-hike jitters weigh
European shares opened flat on Tuesday as worries of further interest rate hikes by major central banks in the face of slowing economic growth countered support from defensive healthcare stocks.
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