Free Trial
CHINA PRESS

PBOC To Remain Flexible In Its Open Market Operations

US TSYS

Flat Open

JGB TECHS

(H3) More Stable After January Volatility

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

MNI BRIEF: Data Key To ECB's post-Feb Policy Moves - Panetta

(MNI) LONDON

ECB Executive Board member says a 50 bps hike in Feb is likely, but data driven beyond.

True

Having raised rates by half a point in December, the ECB is likely to raise rates by another 50bps when it meets next week, Executive Board member Fabio Panetta said in an interview Tuesday. But subsequent moves should guided by both by incoming data and the medium-term outlook for growth and inflation. “It was reasonable to increase rates in December and signal a similar step in February,” Panetta said. “But beyond February any unconditional guidance – that is, guidance unrelated to the economic outlook – would depart from our data-driven approach.”

March’s Eurosystem staff projections offer an opportunity to reassess the situation and provide clarity over the ECB’s reaction function, Panetta said. “Depending on this assessment, we may decide that more or less tightening is needed compared to what we envisaged in December."

Keep reading...Show less
185 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

Having raised rates by half a point in December, the ECB is likely to raise rates by another 50bps when it meets next week, Executive Board member Fabio Panetta said in an interview Tuesday. But subsequent moves should guided by both by incoming data and the medium-term outlook for growth and inflation. “It was reasonable to increase rates in December and signal a similar step in February,” Panetta said. “But beyond February any unconditional guidance – that is, guidance unrelated to the economic outlook – would depart from our data-driven approach.”

March’s Eurosystem staff projections offer an opportunity to reassess the situation and provide clarity over the ECB’s reaction function, Panetta said. “Depending on this assessment, we may decide that more or less tightening is needed compared to what we envisaged in December."

Keep reading...Show less