Free Trial

MNI BRIEF: ECB Tightening Conditions Peak Has Passed -Schnabel

(MNI) Milan

The peak of tightening financial conditions coming from the European Central Bank's hiking cycle is "now behind us", executive board member Isabel Schnabel said in a speech in Milan on Friday.

Since the ECB paused in October, Eurozone financial conditions have come down "quite a bit" after markets started to anticipate cuts "quite aggressively", loosening financial conditions, Schnabel said in her speech. (see MNI SOURCES: ECB Cut Expectations Range From 50-100BP In 2024)

She noted services inflation remains sticky as 90% of the basket for services prices is still above 2% and seems that monetary policy tightening had more impact on goods than services. However, after some months when growth surprises were always tilted to the downside, the trend could have to start reversing and the economy might be "picking up," she noted.

MNI Rome Bureau | +34-672-478-840 | santi.pinol.ext@marketnews.com
True
MNI Rome Bureau | +34-672-478-840 | santi.pinol.ext@marketnews.com
True

To read the full story

Close

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.