monetary-policy
Top StoriesAnalysis-ECB ‘qt’ May Be Next Challenge for Tumultuous Markets
Top StoriesPolish C. Banker Kotecki Says Rates Should Be Several Percentage Points Higher
Top StoriesSwiss National Bank Makes Another Large Draw on Fed Swap Line
Top StoriesEuropean Stocks Fall as Hot U.S. Inflation Data Sparks Rate Hike Fears
ECB’s Hawks Call for More Rate Hikes Soon
Date: October 13, 2022
WASHINGTON (Reuters) -Two European Central Bank policy hawks called for more interest rate hikes on Thursday to fight runaway prices in the euro zone. The ECB has raised its rate on bank deposits twice, promised more hikes and begun a debate about unwinding its 3.3-trillion-euro ($3.20 trillion) bond purchases – the legacy of its fight...
Dollar Hits Fresh 24-year High vs Yen After Strong U.S. Inflation Data
Date: October 13, 2022
By Gertrude Chavez-Dreyfuss NEW YORK (Reuters) – The dollar hit a fresh 24-year peak against the yen on Thursday, gaining across the board, after a blistering U.S. inflation report that opened the possibility of a 100-basis-point interest rate hike at next month’s Federal Reserve policy meeting. Data showed U.S consumer prices increased more than expected...
Analysis – Turbulent UK Bond Market May Force BoE’s Hand Again
Date: October 12, 2022
By Dhara Ranasinghe and Harry Robertson LONDON (Reuters) – Bank of England Governor Andrew Bailey has been unequivocal: the central bank will end emergency support for bonds on Friday. Yet with markets showing few signs of stabilising, the BoE may have little choice but to come back with more. Britain’s government borrowing costs jumped again...
EU’s Debt Laggards Are Hurting the Fight Against Inflation, Austria Says
Date: October 12, 2022
VIENNA (Reuters) -Excessive debt in some EU countries is hampering the fight against inflation, Austria’s finance minister said on Wednesday, adding that his country would soon press the worst offenders to get their affairs in order. Austria, a member of the EU’s self-styled “Frugal Four” alongside Denmark, Sweden and the Netherlands, has long pressured other...
Analysis-Weak Forint Rains on Hungary’s ‘no More Hikes’ Parade
Date: October 12, 2022
By Krisztina Than BUDAPEST (Reuters) – Hungary’s central bank tightened forint liquidity further on Wednesday at a deposit tender as part of its latest efforts to shore up the currency, but too much is stacked against it to provide relief any time soon. The forint, which hit new all-time lows this week, has become a...
ECB’s Villeroy Lays Out Plan for Shrinking Balance Sheet
Date: October 12, 2022
NEW YORK (Reuters) – The European Central Bank should start shrinking its balance sheet once its interest rate is close to 2%, first by getting banks to repay their loans and then by whittling down its bond holdings, ECB policymaker Francois Villeroy de Galhau said on Tuesday. Trying to fight runaway prices, the ECB has...