-
Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
EM Policy
EM Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM EM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI Podcasts -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
Commodities
Real-time insight of oil & gas markets
-
Credit
Credit
Real time insight of credit markets
-
Data
-
MNI Research
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
-
About Us
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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 AccessMNI BRIEF: ECB Must Hike With Care, Says Bank of Italy's Visco
The European Central Bank could already be at or close to its neutral rate, and should continue hiking with care but only for so long as inflation expectations continue to call for tightening, Bank of Italy Governor Ignazio Visco said in a speech this Friday in Florence.
The neutral rate of interest is somewhere between 0.7% and 1.8%, Visco said, adding that the terminal rate of interest should be found by “proceeding gradually”. High uncertainty calls for prudence in setting future hikes, with a meeting-by-meeting approach based on last available data.
“[Decisions] will have to maintain a far-sighted orientation, based on the medium-term economic outlook,” said Visco, warned of the effect that large hikes can have in lowering inflation expectations.
While current inflation mainly caused by energy prices cannot be wholly curbed by monetary policy, the ECB can reassure households and businesses that it is determined to bring inflation down and anchor expectations.
There is also a danger that a worsening economic outlook and “excessively fast” hiking prompt a recession, making it harder to provide price stability in the medium term. (See MNI SOURCES: More ECB Policymakers See Restrictive Rates)
“In the euro area a rate hike exerts its largest effect on inflation after one or two years; however, it also has its largest impact on GDP growth after about a year and a half,” Visco said.
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.