MNI China Daily Summary: Wednesday, March 12

MNI BRIEF:Direction Of Inflation Shocks Harder To Call-Lagarde

MNI BRIEF: EU Targets Retaliation Tariffs On US Red States

MNI BRIEF: China To Boost Environmental Equipment Industry

MNI BRIEF: China SME Index Highest Since June 2021

MNI China Press Digest March 12: FDI, Cars, Retail Sales

MNI: JAPAN FEB CORP GOODS PRICE INDEX +4.0% Y/Y; JAN +4.2%

MNI: USDA: 2024/2025 CORN PRODUCTION EST 14.87B BSL

EZ/UK T-Bill Calendar: 12-Month BOT Auction on Wednesday

GERMANY: Union/SPD Migration Alignment After Turmoil Threatened Debt Deal (BILD)

GERMANY: Official Interim Election Results Tilt Towards Missing BSW & FDP

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ECB: Cipollone Q&A: Composition Also Matters For Structural Liquidity

ECB
BundesbankCentral Bank NewsEM BulletEuropean Central BankEmerging Market NewsCEEMEAEurozoneGermanyBulletMarketsFixed Income BulletsForeign Exchange Bullets
  • Q: Do you have a personal preference for the relative weights between the structural bond portfolio and the structural refinancing operations in the future?
  • A: On structural liquidity, it is not just the size, but also the composition that matters. My personal preference is we should provide banks with sufficient liquidity in a structural way so that they have enough reserves to face unforeseen volatility, but also reserves they can count on to extend credit to the economy.

 

  • Q: How does balance sheet runoff impact neutral rate estimates? Does that have an implication on rate setting?
  • A: Sometimes I wonder why we spend so much time discussing r*. If you think monetary policy can influence real variables, then it can impact the neutral rate. People debate about that. If we don’t increase investment, we cannot impact potential growth. If interest rates impact. And if monetary policy has as an influence or interest free beyond investment, then you can, you can think that there is a channel from monetary policy to the real economy.
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  • Q: Do you have a personal preference for the relative weights between the structural bond portfolio and the structural refinancing operations in the future?
  • A: On structural liquidity, it is not just the size, but also the composition that matters. My personal preference is we should provide banks with sufficient liquidity in a structural way so that they have enough reserves to face unforeseen volatility, but also reserves they can count on to extend credit to the economy.

 

  • Q: How does balance sheet runoff impact neutral rate estimates? Does that have an implication on rate setting?
  • A: Sometimes I wonder why we spend so much time discussing r*. If you think monetary policy can influence real variables, then it can impact the neutral rate. People debate about that. If we don’t increase investment, we cannot impact potential growth. If interest rates impact. And if monetary policy has as an influence or interest free beyond investment, then you can, you can think that there is a channel from monetary policy to the real economy.