Euro Bears Push Back Ahead Of ECB Virtual Rate Announcement

Photographer: Alex Kraus/Bloomberg

The European Central Bank is struggling to make its intentions clear to investors at a critical juncture in its response to the coronavirus recession.

Economists and investors see mixed messages from the ECB’s top policy makers. Most important is a perceived disconnect between President Christine Lagarde’s press conferences after policy decisions, and blog posts by Chief Economist Philip Lane the following day.

National central bank officials have taken note, expressing concern privately that such a dynamic risks undermining Lagarde’s credibility just as the ECB gears up for talks on whether to increase monetary stimulus. The officials asked not to be identified because internal deliberations are confidential.

The Frankfurt-based institution has even considered whether to change the practice of publishing a blog by Lane after the policy decision, according to euro-area officials.

An ECB spokesman declined to comment.

ECB chief economist adopted stronger tone on currency appreciation

The ECB’s communication challenge is all the

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(Bloomberg Businessweek) — The pandemic could easily have derailed Christine Lagarde’s plan to enlist the European Central Bank in the fight against climate change. Only she won’t let it. “It’s a topic that I am very keen about, which I believe has a systemic dimension,” she told journalists after the ECB’s latest monetary policy meeting on Sept. 10.



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© Photographer: Klaus Kremmerz for Bloomberg Businessweek
4020a_econ_BCE_HP This image can only be used with attached article for period of 90 days from publication

Lagarde made battling global warming a defining feature of her eight-years as managing director of the International Monetary Fund, warning that humanity would be “roasted, toasted, fried and grilled” if it failed to act.

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She reiterated that message as she vied to become the ECB’s first female president last year, telling members of the European Parliament that combating climate change should be “mission critical” for the

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(Bloomberg) —

President Christine Lagarde said the recent appreciation of the euro has partly offset the positive impact that the European Central Bank’s stimulus had in boosting inflation and reiterated that policy makers stand ready to adjust all of their instruments if needed.

The Governing Council will carefully assess all the information coming from the euro-area economy, including developments in the exchange rate, with regard to their impact on the medium-term inflation outlook, she said on Sunday.

“When it comes to meeting our price stability goal, there is and there will be no complacency,” Lagarde argued in her remarks at the meeting of the Council of Governors of the Arab Central Banks and Monetary Authorities. “Monetary policy will continue to play its role in the euro area with full commitment to its mandate.”

Her comments show the predicament that the ECB is facing with the euro’s recent rise to the

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FRANKFURT (Reuters) – Euro zone governments must keep spending heavily to aid the bloc’s recovery from its historic pandemic-induced recession, complementing already super-easy monetary policy, European Central Bank President Christine Lagarde said on Sunday.

With debt levels blowing past 100% of GDP this year, concerns are rising that politicians will struggle to push through more support and some subsidies, raising the risk that employment and income schemes could abruptly end.

“Confidence in the private sector rests to a very large extent on confidence in fiscal policies,” Lagarde said in a speech. “Continued expansionary fiscal policies are vital to avoid excessive job shedding and support household incomes until the economic recovery is more robust.”

Employment subsidy schemes have already been extended in several countries but some are advocating longer, one- or two-year extensions to bolster confidence while the bloc recovers from recession that could slash 8% from output this year.

“Keeping

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