ECB Signals More Rate Cuts Ahead \ stacker news ~econ

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360 sats \ 8 comments \ @TomK 19 Jul econ

ECB officials hinted at additional rate cuts later this year, following recent monetary policy decisions. Francois Villeroy de Galhau, French central bank chief and ECB governing council member, described market expectations for future rate decisions as "quite reasonable" during a BFM Business interview on Friday.

In June, the ECB lowered the key interest rate for the first time since the major inflation surge and kept rates unchanged in their latest meeting. The ECB emphasized that future rate adjustments depend on data, with no predetermined path.

Lithuanian central bank head and ECB member, Gediminas Simkus, agreed with the market's forecast of two more rate cuts by year-end, citing a clear downward trend in Eurozone inflation. "There's no doubt the September rate cut will be discussed," he told reporters on Friday.

Currently, financial markets anticipate a 0.25% rate cut in September and another similar cut by year-end. However, Bloomberg reported that some ECB members see only one more rate cut as justifiable this year.

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77 sats \ 1 reply \ @IamSINGLE 19 Jul

The anti-inflation campaign has killed off a years-long rally in eurozone house prices. Several eurozone countries including Spain and Ireland have large numbers of people with adjustable-rate mortgages who have faced sticker shock when looking at their monthly payments. Meanwhile financing costs have risen for renewable energy projects such as wind turbines, a key part of the EU’s effort to reduce greenhouse gas emissions.

13 sats \ 0 replies \ @TomK OP 19 Jul

and then there is the fact that these madmen from Brussels have almost stifled construction with their climate regulation on the supply side. then there is the demographic cliff into which the european Union will now fall. less and less demand for housing, overcapacity, then at some point a downward price spiral. it's going to be fun

58 sats \ 0 replies \ @grayruby 19 Jul

ECB and BoC in lock step.

45 sats \ 4 replies \ @Satosora 19 Jul

"with no predetermined path"? You can see the data, and how other countries are trying. Rate cuts will continue to happen, even if you put your head in the sand!

33 sats \ 3 replies \ @TomK OP 19 Jul

of course you're right. but it's all part of the media spectacle of the central banks, which have no real power, just the camouflage they plant in people's heads via the mass media

45 sats \ 2 replies \ @Satosora 19 Jul

I guess it makes them look like they are ahead by doing nothing and looking like they are in control.

23 sats \ 1 reply \ @TomK OP 19 Jul

they can keep up this game of manipulating the markets with the help of the media for quite some time. in the long run, however, the bond market is always the force par excellence

45 sats \ 0 replies \ @Satosora 19 Jul

It only works so long until things start crashing. Remember Germany? Their currency became so inflated that things became difficult for them. Took years to fix.