Monetary Policy

DZ Bank Chief Economist Michael Holstein does not share the ECB’s concern that medium-term inflation might be too low. And with regard to the trade dispute with the US, he anticipates a tough negotiating stance from Washington.

Four years after its last strategy review, the ECB is reassessing its monetary policy tools. Good communication with financial markets will play a key role in the process. The bond purchase programme, which has faced strong criticism at times, is also under scrutiny.

By 2027 at the latest, Christine Lagarde will step down from the ECB presidency. The markets are already assessing potential successors.

ECB Works Council Chair Carlos Bowles claims that employees were pressured to adapt study results to suit the agenda of top managers. The central bank strongly denies the allegations.

According to Bantleon Chief Economist Daniel Hartmann, the planned 180-degree turnaround in German fiscal policy will have a clear impact on the ECB's monetary policy. He sees very limited room for further interest rate cuts in the eurozone – perhaps one more 25bp cut.

After five consecutive rate cuts by the ECB, a pause is needed. Inflation risks are increasing – partly due to the massive spending plans announced in Berlin.

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.

Government debt is rising in a lot of countries. Now it is time to consolidate, Brian Coulton and Ed Parker from Fitch Ratings say in an interview with Börsen-Zeitung.

The Bank for International Settlements (BIS) is optimistic that the global economy will achieve a soft landing. However, it cautions that central banks must remain vigilant on inflation, and calls for fiscal restraint from governments.

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 central banks have shown that they can take powerful action against a dramatic rise in inflation. Now the central banks must stay the course – and governments must take action.

Jens Weidmann and Emanuel Mönch are the Directors of the new Centre for Central Banking at the Frankfurt School. In an interview they discuss monetary policy, climate change, and the work of the Centre.

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.

KfW Chief Economist Fritzi Köhler-Geib discusses how a turnaround in the interest rate cycle will impact investment by corporates and SMEs.

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.

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 Bank of Japan is under pressure from the financial market to raise interest rates for the first time in 17 years. But according to former central banker Shirai, there is no scope for further rapid interest rate hikes. The Japanese economy is too weak for that.

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.