ECB

Banks are facing geopolitical challenges that can no longer be met with conventional risk management methods. ECB Banking Supervision identifies three main channels via which shocks can reach the banking system.

The Czech National Bank is moving ahead with a study on investing 5% of its reserves in Bitcoin. The initiative from CNB Governor Aleš Michl comes as the United States is also considering crypto reserves.

LBBW Chief Economist Moritz Kraemer forecasts that the ECB will cut interest rates four more times this year, while the US Federal Reserve will only do so once at most. The latter could intensify President Donald Trump's attacks on the Fed.

Last week's decision by the ECB to cut rates was fairly straightforward. But from April onwards there is likely to be a fierce debate within the Governing Council on future monetary policy direction.

With key interest rates gradually decreasing and corporate profits on the rise, Frank Engels, Chief Investment Officer of Union Investment, sees opportunities in equities for 2025. But the uncertain geopolitical landscape looms as a potential risk.

If Unicredit's takeover of Commerzbank succeeds, the fight against money laundering will face new cross border challenges. The EU institutional framework has structural shortcomings in reporting suspicious activities, and a lack of capacity in law enforcement.

Artificial intelligence (AI) can help central banks with forecasting. However, the technology also harbours risks for financial stability and monetary policy.

Inflation is falling again after the rise in May. However, the high inflation in services should cause unease at the European Central Bank.

ECB Executive Board member Isabel Schnabel recently received the Global Economy Prize in the Economics category. Since taking up her post at the central bank, she has become an influential voice.

The CIO of LBBW Asset Management, Michael Hünseler, expects that the Fed will cut interest rates this year. And he anticipates greater volatility on stock markets.

The ECB's rate cut in early June was appropriate. But following it with another one in July would be a mistake.

Commerzbank's Chief Economist Jörg Krämer believes that the ECB's recent interest rate cut is likely to prove to have been a mistake.

Financial markets had already priced in the 6 June interest rate adjustment. The ECB must now weigh up its next move.

A recent survey commissioned by the Bundesbank shows that knowledge about the planned digital euro is still poor among the German population.

Ingo Mainert, CIO Multi Asset Europe at Allianz Global Investors, views it as unlikely that the ECB would come up with a second rate cut in July. And the Federal Reserve might not cut rates in September.

François Villeroy de Galhau warns against cutting rates too late by the ECB. In the interview with the Börsen-Zeitung the Governor of the Banque de France also talks about which factors could particularly influence monetary policy in the near future.

Carsten Roemheld from Fidelity International discusses the phenomenon of Nvidia, interest rate moves by the ECB, and sectors outside of big tech that have the potential to lead the stock markets.

Part of the population has little trust in public institutions, including the European Central Bank. This is not good for democracy, and the ECB wants to improve its own communication. But putting financial knowledge on the school curriculum would also help.

DIW President Marcel Fratzscher believes that interest rates in the Eurozone are too high and calls for a different communication strategy from the ECB.

The ECB is very likely to introduce the digital euro by the end of the decade. Whether this is an urgently needed innovation or a misguided project is a matter of debate among experts.

The ECB is making several adjustments to its monetary policy framework. However, the changes are not a departure from the current system of excess liquidity.

Monetary policy expert Volker Wieland believes that the current interest rate level in the eurozone is not particularly restrictive. Therefore, there is much to suggest that key interest rates will not be lowered before June.

When considering interest rate cuts, the ECB should not look too closely at its own forecasts for inflation and economic growth. There are several reasons for this.

The ECB bases its monetary policy on the economic data for the entire eurozone. The situation sometimes differs significantly depending on the euro country. This poses a problem for the central bank.