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European Central Bank

January

Christine Lagarde, president of the European Central Bank, said Europe’s economy will remain frail in the near term, with risks to the outlook still tilted to the downside.

ECB cuts rates for fifth time as eurozone economy flat lines

Investors maintained bets for further easing, pricing an additional 70 basis points of cuts during the rest of 2025, which would lower rates to near 2 per cent.

December 2024

European Central Bank president Christine Lagarde.

ECB cuts rates for the third straight time

The European Central Bank indicated more cuts are to come as it sought to prop up the bloc’s struggling economy.

Justin Trudeau and Donald Trump at their dinner at Mar-a-Lago.

How markets can get used to Trump’s bullying shock therapy

Markets need to quickly understand that the next US president and his team see trade in political, rather than narrowly economic, terms.

October 2024

Up for sale: The Chrysler building is one of the most iconic skyscrapers in Manhattan.

Tussle for control of New York’s famed Chrysler Building

Legal disputes and ruthless manoeuvres are commonplace in the cutthroat world of New York real estate. Now the fate of a famous skyscraper hangs in the balance.

European Central Bank president Christine Lagarde.

ECB cuts rates again as euro zone economy stagnates

The European Central Bank offered its first back-to-back rate cut in 13 years - in a shift to protecting economic growth.

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September 2024

Federal Reserve Board Chairman Jerome Powell.

Did central banks get the inflation crisis right?

Rate-cutting cycles in recent decades – such as in the early 2000s, or during the financial crisis of 2007 – have tended to be associated with steep economic downturns.

Christine Lagarde

ECB cuts rates again as economy stumbles

The ECB is getting more confident that consumer-price growth is returning to target following its historic spike.

US Federal Reserve chairman Jerome Powell.

The Fed needs to avoid becoming passive-aggressive

Adjusting policy in a timely manner to sustain economic expansions is difficult. Given the lags in policy transmission, the time to reset the funds rate has arrived.

August 2024

From left: Federal Reserve chairman Jerome Powell, Bank of Canada governor Tiff Macklem and Bank of England governor Andrew Bailey at the Jackson Hole symposium.

Jackson Hole bankers pivot to cuts as soft landing comes into view

Global rate-setters have left the Wyoming symposium cautiously optimistic, but acutely aware of the risks of either cutting rates too soon or leaving it too late.

Christine Lagarde, president of the European Central Bank (ECB), from left, Kazuo Ueda, governor of the Bank of Japan (BOJ), and Jerome Powell, chairman of the US Federal Reserve, at the Jackson Hole economic symposium in Moran, Wyoming, US, on Friday.

Jackson Hole gathering reveals fresh concern for central bankers

Officials from three of the world’s major central banks have signalled they are on course to lower interest rates emerging weakness in labour markets and growth become the chief threat for policymakers.

Adrian Orr, governor of the Reserve Bank of New Zealand.

New Zealand cuts rates in a rapid change of tune

The RBNZ’s pivot to easing is a dramatic shift after it said in May it considered raising rates and wouldn’t cut them until the second half of 2025.

Negotiated wages in Germany are expected to shoot up by 5.6 per cent in 2024, based on deals agreed between January and June.

Eurozone rate cut questioned as German wages soar

Not all rate-setters are convinced that the ECB will manage to avoid what bank president Christine Lagarde has referred to as “tit-for-tat inflation”.

The Bank of England announces its voting splits on the day of the decision.

Central banks need true transparency not fake consensus

The Bank of England isn’t afraid to advertise its differences. That is better for creating trust than the obsession with a united front at the US Fed.

July 2024

Ships and bulk carriers anchored offshore from Singapore. The cost of moving a 40-foot container between Asia and northern Europe at short notice has more than doubled since April.

Wave of shipping inflation could complicate rate cuts, economists warn

Economists are sounding the alarm on the impact of surging shipping costs on the global fight against inflation.

The question of a September rate cut is ‘wide open’, says ECB president Christine Lagarde.

We don’t know when rates will be cut again, ECB says

European Central Bank chief Christine Lagarde says the question of an interest rate cut in September is “wide open”, and dependent on data.

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Fed chairman Jerome Powell appears more confident than RBA’s Michele Bullock on inflation.

Bond market dials up US rate cut bets; RBA left behind

Goldman Sachs says there is now “solid rationale” for the Federal Reserve to start cutting rates this month. It’s a different picture in Australia, where markets are still pricing in a rate rise.

US rate cut hopes have fuelled a global equities rally.

ASX to hit 8000 as markets bank on Federal Reserve to cut rates

It’s taken the local bourse just over three years to climb another 1000 points after breaching the 7000 level in April 2021, fuelled by pandemic-era stimulus.

The US is the epicentre of the private challenge to public markets.

Why central banks are in two minds on the private credit boom

The US Fed is not worried about the systemic risks of private credit, but the Bank of England and the ECB are not so sure.

June 2024

Marine Le Pen after a press conference in Paris this week.

France’s election could trigger market shockwaves, BoE warns

The Bank of England’s alert comes before Sunday’s first round of voting. Polls now show the populist right potentially closing in on a parliamentary majority.

US Fed chairman Jerome Powell at a press conference overnight. He said it was a “balancing act” to subdue inflation and keep the economy growing.

The Fed treats itself to the luxury of time when it comes to rates

The decision to sit pat highlights the very different approaches central bankers are taking as they try to rein in inflation while maintaining economic growth.

Original URL: https://www.afr.com/topic/european-central-bank-1mza